state one of the particular strengths of new york state is its diversity — and this is especially true from an economic perspective. in western and central new york there are top - tier universities, manufacturing businesses, a thriving professional services industry, as well as popular tourist destinations. since the 2008 financial crisis, the declining population trend in upstate new york of earlier decades had largely stabilized. in recent years, new businesses had sprung up and unemployment had fallen to historic lows. 1 / 3 bis central bankers'speeches all of this was against the backdrop of a strong national economy. at the start of the year, most forecasts anticipated continued moderate growth throughout 2020 and into 2021. according to the data for april, the unemployment rate now stands at a staggering 14. 7 percent — a figure i hoped that i would never see in my lifetime, and one that is sure to get worse before it gets better. if i think back to the economic picture of february, nobody could foresee this would be our reality within a few short months. it ’ s likely that the latest numbers do not reveal the full extent of the financial devastation faced by millions of american families. the data don ’ t capture those who had to leave their jobs, either for their own health or to take care of loved ones. many more people have had their hours reduced or have been forced to take a pay cut. it ’ s going to be some time before we have a detailed understanding of the full economic effects of the public health measures necessary to combat the coronavirus. what we do know is that the pandemic has put a large question mark over the positive trends experienced in our state, as well as the nation as a whole. as social distancing measures are relaxed, we will get a better understanding of how different industries are affected. we know that travel, hospitality, and retail have all been hard hit. what we don ’ t know is what the shape or timescale of the recovery will be. it ’ s going to be some time before we have a clearer view of the effects on other industries, including autos, higher education, manufacturing, and professional services. our response despite this extraordinary uncertainty, at the federal reserve we worked quickly to put measures in place to support the economy and set the foundation for a strong recovery. during the first half of march, the federal open market committee ( fomc ) brought the target range for the federal funds rate to near zero. 1 the fomc has indicated

christian noyer : re - examining central bank orthodoxy for un - orthodox times speech by mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, at the conference of the global interdependence center / bank of france, paris, 26 march 2012. * * * the unconventional policies implemented during the crisis have transformed the face of central banking. but will these changes prove permanent and will “ the unconventional become the new normal? ” there is not yet definitive answer to this question. we may not, as easily as we would like, be able to revert exactly to the status quo ante. however, i strongly believe we must make sure that the gains from the pre - crisis period, in terms of monetary and price stability, are not compromised in the process. prior to the crisis, a description of central banks would have centred on four characteristics : they were focused with price stability being their primary or key objective, and no responsibility was sought or given for financial stability ; they were of limited size with very small balance sheets and interest rates as their only policy instrument ; they were independent, a condition recognised as necessary to anchor inflation expectations, and embodied in very strong institutional frameworks ; and they were successful : the “ great moderation ”, a period of exceptional low volatility in output and inflation, was widely seen as a product of efficient and wise monetary policies. there was a happy feeling that, at last, a perennial monetary regime had been found, well - tailored to the characteristics of a modern market economy. financial markets were efficient and the zero lower bound and liquidity trap appeared to be no more than historical curiosities. with hindsight, of course, we can see now that this “ ideal ” economy may never have existed. the great moderation was as much a product of “ good luck ” ( brought by disinflationary effects of globalisation ) than good policy. monetary stability is a necessary but not a sufficient condition of financial stability, because capital markets are not always and necessarily efficient. and downward financial spirals may quickly bring our economies to the point where interest rates can no longer be used as effective tools. therefore, as the crisis unfolded, central banks responded by taking unprecedented measures and, in the process, underwent three major changes a diversification of their interventions. in order to both : unclog financial markets ( both private and public ). this involved exceptional liquidity provision to