communities are still weighed down by lingering high rates of delinquencies and foreclosures and some others have suffered appalling damage from sandy. going forward, let me reiterate that the fed will promote maximum employment and price stability to the greatest extent our tools permit, and we will stay the course. when we achieve a stronger recovery in the context of price stability, i ’ ll view it as consistent with our goals and not a reason to pull back on our policies prematurely. if you ’ re trying to get a car moving that is stuck in the mud, you don ’ t stop pushing the moment the wheels start turning – you keep pushing until the car is rolling and is clearly free. thank you for your kind attention. i would be happy to take a few questions. bis central bankers ’ speeches

brian p sack : preparing for a smooth ( eventual ) exit remarks by mr brian p sack, executive vice president of markets group of the federal reserve bank of new york, at the national association for business economics policy conference, arlington, virginia, 8 march 2010. * * * thank you for inviting me to speak today. in my remarks, i will provide an update on the progress that the federal reserve is making toward preparing for a smooth exit from the extraordinary policy actions that were taken in response to the financial crisis. 1 i should note up front that i will not be providing any information about the likely timing of policy tightening ; those decisions will be made and communicated by the federal open market committee ( fomc ). instead, i will focus my comments on the policy tools and strategy that are likely to be used whenever that exit becomes appropriate. i will also discuss the preparedness of financial markets for the fed ’ s exit, in order to assess how financial conditions may evolve as the exit approaches and gets under way. when the time comes to tighten monetary policy, the federal reserve will be embarking on a tightening cycle like no other in its history. first, this tightening cycle will have two policy dimensions, in that the fomc will have to decide on the path of its asset holdings in addition to the path of the short - term interest rate. second, we will be using tools to drain reserves that are new and that will have to be implemented on a scale that the fed has never before tried. and third, we will be operating in a framework of interest on reserves that has not been fully tested in u. s. markets. all of that may sound risky. however, i believe the federal reserve is positioned to minimize any risks involved. most important, we have worked hard to ensure that we have all of the tools needed to exit, and fomc members have begun to describe a strategy for using them that is cautious along several dimensions. in addition, if we communicate effectively, the markets should be clearly informed and well prepared ahead of the exit. these are the points that i will emphasize in more detail. liquidity facilities : a success story when discussing the federal reserve ’ s exit strategy, it is important to separate liquidity facilities from the stance of monetary policy. while the exit from the accommodative monetary policy stance has yet to begin, the exit from liquidity facilities is nearly complete. let me begin with some comments on recent developments regarding the liquidity