1776 and the Economics of Government

Good evening. Thank you, Colby, for that kind introduction. It's great to be here. As many of you know, Congress has given the Federal Reserve and specifically the Federal Open Market Committee the job of delivering stable prices and maximum employment for the American people. I am focused on understanding economic conditions and where they are headed — so that we can position monetary policy to achieve those goals. My team and I spend a lot of time analyzing data and listening to people. We talk to households across the economic spectrum, firms of every size and sector, nonprofits, and a wide range of financial institutions. These conversations tell the stories behind the data and provide a glimpse into the future, since the plans we hear about are not yet reflected in official statistics. The people behind these conversations — employers, workers, families and their communities — are at the forefront of my mind when I'm making monetary policy decisions. Right now, these conversations reflect strain and uncertainty. Inflation is taking a toll. Many families are struggling to make ends meet, especially with the jump in gas prices. Workers are anxious about the job market, both those seeking employment and those worried about keeping their jobs as artificial intelligence (AI) reshapes the workplace. Businesses are navigating enormous change: tariffs, evolving regulations, and now the conflict in the Middle East. All of this is creating opportunity but also disruption. Paulson says current Fed policy appropriate but markets right to price in hikes