13 bis central bankers'speeches means that we ’ re going to do something momentarily. usually it takes a while for us to develop those themes and issues, and reach a consensus. so, i wouldn ’ t take a lot of signals just because it was in the minutes last time and something here is imminent. maureen o ’ hara : well, you ’ ll have a few openings, too, in the fomc that have to get filled in before you ’ ll get full strength. so again, a slightly different federal reserve board going forward, too. president dudley : yes. maureen o ’ hara : an excellent point, an excellent point. what have we got? here we go. audience member : if the new administration continues with this isolationist policy, is able to successfully put tariffs on imports, would that have an inflationary impact and would the fed have to address that? president dudley : well, again, i don ’ t think that ’ s – i don ’ t really think that ’ s the professed goal of the administration. i think the administration wants better trade deals and not – i think the question is whether they ’ ll get better trade deals without actually having to put, you know, higher trade barriers in place. obviously to the extent that trade barriers go up and that would tend to raise import prices, that would feed into price level in terms of inflation, and so obviously, we had to take that into consideration in terms of how we do monetary policy. but going to be happening in a dynamic world where a lot of other things are going on. so, i wouldn ’ t want to take one thing and say, “ oh, if that happens, we ’ re going to do x, ” because it really depends on, one, it ’ s highly speculative what ’ s going to happen on trade policy, and two, even if it happened, it would depend on magnitude and it would depend on a lot of other things that are going on. so i think it ’ s really hard to speculate about something like that. maureen o ’ hara : okay, i see some hands way back there. so if you can hand the microphone to someone who ’ s got their hand up, way back there, that ’ d be great. audience member : recently, it ’ s been speculated that the trump trade policy actually will evolve into a border tax. it ’ s been in the works in the republican party for the last several years. this would simply

are drawn mainly from interconnections with the traditional financial system. the report identified vulnerabilities unique to crypto assets and recommended approaches to regulation and supervision in the future, highlighting the importance of ongoing research to improve our understanding of risks and opportunities, and planning to ensure we can continue to achieve our mission including supporting safety and stability in this evolving domain. the fed also collaborates with other u. s. regulators on the topic of stability risks arising from digital assets, and coordinates with international authorities through forums including the bank for international settlements ( bis ) and the financial stability board. finally, a third key dimension through which innovation – both broadly and in digital assets specifically – impacts the mission of the federal reserve is in relation to the payments system. on a daily basis, roughly $ 4 trillion of transactions are settled through fedwire, the real - time gross settlement ( rtgs ) service offered by the federal reserve. 9 fednow, targeted for release in mid - 2023, represents a key innovation to modernize the future of payments. this new cloud - based rtgs system will enable consumers and businesses to send payments instantly through their depository institutions on a 24 - hour, 365 - days - a - year basis. of course, payments do not always stay within national borders. the federal reserve is an active participant in international efforts regarding payment systems via the committee on payments and markets infrastructures ( cpmi ) at the bis. the cmpi collects best practices and issues recommendations for managing payments, clearing, and settlement risk across financial market utilities. at present, a high - priority area of study for the cmpi is coordinating the development of 24 / 365 rtgs systems – like fednow – globally. innovation in cross - border settlements will reduce liquidity outlays and settlement risks, leading in turn to cheaper cross - border payments. the new york innovation center and project cedar in the remainder of my remarks, i'd like to focus on an example of ongoing innovation research that is currently underway at the federal reserve bank of new york. to further enhance our ability to contribute to financial innovation globally, the new york innovation center, or nyic, was established in 2021. the nyic bridges the worlds of finance, technology, and innovation. through technical research, experimentation, and prototyping, our team generates insights into high - value central - bank - related opportunities, enabling stakeholders and the central bank community to enhance the functioning of the global financial system. 3 / 5 bis