US FOMC Member Barr Speaks

I am grateful for the opportunity to speak to you. Our focus in this conference is financial inclusion, and something that will likely have great consequences for financial inclusion and our economy more broadly in the years ahead is artificial intelligence (AI). As I have explored in a number of speeches over the past several years, AI has the potential to transform lives and the U.S. economy, possibly empowering workers to be more productive, with lower- and middle-income workers benefiting the most. But it is also the case that AI ...

Thank you for the opportunity to speak to you. The U.S. economy relies on a strong and stable banking system that extends credit to households and businesses. America's prosperity as well as the day-to-day needs of people and their efforts to plan for and build a better future depend on it. Today I want to share with you a few thoughts on the Federal Reserve's role in overseeing the banking system and supporting financial stability, and concerns that I have about how the Fed and other banking regulators are weakening regulation and ...

FED GOV BARR/COMMUNITY BANKERS: FFR ‘IN GOOD PLACE’ NOW BUT MIGHT HAVE TO HIKE RATES IF INFL PERSISTS ; RISKS ON BOTH SIDES; FOR NOW POLICY IN GOOD PLACE #Barr #FederalReserve #economy FED GOV BARR/COMMUNITY BANKERS ‘WE WANT TO BE SURE BEFORE WE TAKE OUR NEXT STEP;’ INFLATION DRIFTING HIGHER, MUST GET BACK TO 2% #Barr #FederalReserve #economy

Thank you for the opportunity to speak to you today. In preparing for this event, I found myself reflecting on the evolution of the concept of financial health. What began as a push for expanding financial access has evolved over the decades—thanks to advances in research, technology, and the efforts of many of you here at today's conference—to a focus on delivering better financial health outcomes for American families. Financial health begins with access, but it does not end there. Products and services that are geared to meet the needs of consumers lead to tangible positive financial outcomes for them. The continued evolution of financial health measures can help to meet that objective. Technological advances in artificial intelligence (AI) have made it easier and cheaper to gather, analyze, and deploy financial data at scale. If properly used, financial health metrics can help people better manage their finances, and in doing so better achieve their financial goals, such as saving for an emergency, buying a home, paying for their children's education, and investing for retirement. Ultimately, financial health measures hold the promise of increasing the resilience of individuals and families, leading to stronger communities and a stronger and more vibrant economy. FED'S BARR DOESN'T COMMENT ON ECONOMY OR MONETARY POLICY

Thank you for the opportunity to speak to you today. There has been a lot of discussion of late about reducing the size of the balance sheet of the Federal Reserve to reduce our "footprint" in the financial system. I think it is important to frame the discussion, first by being clear about the nature of the problem to be solved and then weighing the tradeoffs of any remedies. I think shrinking the balance sheet is the wrong objective, and many of the proposals to meet this objective would undermine bank resilience, impede money market functioning, and, ultimately, threaten financial stability. Some would actually increase the Fed's footprint in financial markets. That's because the Fed's footprint in the financial system consists not only of the duration, composition, and size of our balance sheet (which are distinct issues), but also our roles in promoting the safety and soundness of banks, running the backbone of the payment system, and supporting financial stability. It doesn't make sense to talk about "the Fed's footprint" without taking into account these key functions and the way they interact. Some of the prominent proposals to reduce the Fed's balance sheet would have perverse effects that would actually increase the Fed's footprint in the financial system. For example, some proposals would increase the frequency of Fed lending and transactions in markets, both to implement monetary policy on an ongoing basis and, in extremis, to engage in interventions to preserve financial stability. FED GOV BARR/NYU MARKETEERS: ALL PROPOSALS TO CHANGE BALANCE SHEET POLICY INVOLVE ''SIGNIFICANT TRADEOFFS;' SHRINKING IT 'THE WRONG GOAL' #Barr #FederalReserve #economy FED GOV BARR/NYU MARKETEERS: REDUCING RESILIENCE OF BANKING SYSTEM 'THE WRONG MEANS' TO CHANGE BALANCE SHEET POLICY #Barr #FederalReserve #economy

*BARR: FED'S INFLATION AND EMPLOYMENT GOALS ARE IN TENSION NOW Fed's Barr: We have to take shocks as a given and use the tools that are at hand Fed's Barr: The economy is running at two speeds, with "a lot of capacity" for people at the upper end, but others are having a harder time

It is great to be here with you today. During my career, I've had the opportunity to work on issues affecting rural communities, especially access to capital. My time at the Federal Reserve has only deepened my appreciation for the opportunities and challenges of rural America, as I've traveled over the past several years to rural communities. These communities share many challenges, and they also face distinct obstacles that require flexible solutions. What has stood out to me is the level of innovation and creativity behind many of those solutions. We should do more to elevate these examples, sharing what works and spreading ideas that can expand opportunity and support economic growth across rural America. For example, in 2023, I had the opportunity to travel the Blues Trail in the Mississippi Delta, from Jackson to Memphis. Along the way, I met with local leaders and financial institutions, some of whom are represented here today, to learn how once-thriving rural railroad towns are adapting to both long-standing and emerging challenges. Just in | Fed's Barr refrains from addressing US economic outlook and monetary policy in prepared statements.