keep problems small is to encourage a culture that spots issues and raises concerns early. in my view, the most dangerous type of culture in finance occurs when people see something wrong but do not say something. i think back to the chat room transcripts from the libor and fx scandals. the way traders communicated so openly about their manipulation of markets makes it hard to imagine that others in their firms did not know what was happening. so, why didn ’ t those people say something? there are understandable, human tendencies that can cause each of us to avoid rocking the boat. people want to be team players. 1 those behavioral traits can be amplified through a firm ’ s culture, which can weigh on one ’ s willingness to do the right thing. this is, unfortunately, what seems to have occurred at wells fargo, one of the largest retail banks in the united states. whether to obtain a bonus or simply to keep a job, employees felt they had to keep quiet and meet sales targets despite the cost to customers. 2 1 / 3 bis central bankers'speeches so, how do you change a culture where silence leads to misconduct? i will offer two ideas that might help and one idea that will not. here is what will not work : merely telling your employees to speak up. cultures do not change simply by exhortation. eloquent speeches, a well - phrased value statement, and an annual requirement to acknowledge the code of conduct are just not sufficient. that ’ s the easy one. the two ideas that might work are harder. first, managers have to lead by example. senior executives must be seen within the firm to expect and respect challenges, and in turn must challenge ideas themselves. and, they have to explain difficult decisions to their employees — sharing not only the news of what they have done, but why. more important, mid - level managers have to do the same. of course, mid - level managers will not generally behave that way unless they see their senior leadership setting the example. second, if your organization values people when they raise their hand, your incentives have to reflect that. employees who speak up should be recognized. the courage it takes to speak up, despite the perceived costs, should be counted as a very positive factor in evaluations. and, where raising one ’ s hand has saved the firm ’ s money and reputation by avoiding or keeping a problem small, that action should be rewarded. it ’ s only natural for an economist like me to consider

inflation of non - energy services excluding housing, which is still quite elevated, averaging 3 - 3 / 4 percent over the most recent six months. tightening monetary policy taking into account the different speeds the gears are moving, it is clear that overall demand remains well in excess of supply, and inflation is running far above our 2 percent target. when it comes to monetary policy, we must restore balance to the economy and bring inflation down to 2 percent on a sustained basis. earlier this month, the fomc raised the target range for the federal funds rate to 4 - 1 / 2 to 4 - 3 / 4 percent, the eighth consecutive increase. the fomc said it anticipates " ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. in determining the extent of future increases in the target range, the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. " 3 the committee also said it will continue to reduce its holdings of treasury securities and agency debt and agency mortgage - backed securities, according to the framework it announced last may. 4 3 / 5 bis - central bankers'speeches one aspect of inflation that's important for achieving and sustaining price stability is the anchoring of inflation expectations. since 2012, the fomc has clearly and consistently communicated its resolute commitment to its 2 percent longer - run inflation goal and the importance of well - anchored inflation expectations consistent with that goal. 5 this provides a " north star " for our policy decisions and has helped keep longer - term inflation expectations well anchored. 6 according to our most recent survey of consumer expectations, three - year - ahead inflation expectations are now where they were before the sharp increase in inflation that started in 2021, and one - year - ahead expectations have been trending down since the middle of last year. 7 economic outlook declines in commodity and goods prices will not be enough to bring inflation to 2 percent on a sustained basis. we need all the gears turning at the right pace to restore balance between demand and supply in the entire economy. we still have some way to go to achieve that goal. and it will likely entail a period of subdued growth and some softening of labor market conditions. as a result, i expect real gdp growth to come in around 1 percent for 2023. and i antici