Remarks on the Outlook, Monetary Policy, and Supporting a Vibrant Economy

By Susan M. Collins

March 30, 2023

Washington, D.C.

39th Annual NABE Economic Policy Conference

National Association for Business Economics

Full-text Speech (pdf)

Takeaways from Boston Fed President Susan M. Collins’ March 30, 2023 Remarks

Financial stability: The banking system is strong and resilient, with well-capitalized institutions and ample liquidity. Recent difficulties, and the decisive actions taken in response, demonstrate commitment to use all our tools to ensure the financial system remains safe and sound, and to take action as needed. The lessons learned from the review underway will be welcome, and instructive.
Monetary policy and the macroeconomic outlook: Recent data show that inflation is still too high, continuing to take a toll on households and firms. I anticipate that some additional policy tightening will be needed as we follow through on our commitment to price stability. However, while recognizing the risks and uncertainties to the outlook, I remain optimistic there is a path to bringing inflation down without a significant downturn, because of the resilience I see in the economy.
Financial infrastructure and payments services: The Fed provides essential financial infrastructure the economy depends on – and innovates to meet evolving needs and preferences. In today’s world, people want quick and easy ways to make payments instantly, with immediate access to those funds. To help financial institutions offer instant payment services to their customers around the clock, we will launch the FedNow^SM Service in July.
Community economic development and opportunity: While the Fed’s activities are broad, they all relate to supporting a vibrant and inclusive economy, consistent with our mandates – stable prices and maximum employment. That’s why, for example, we have for decades studied the gaps and disparities behind the aggregates. It is also why the Boston Fed is helping spark collaboration among the private, public, nonprofit, and philanthropic sectors, to find local solutions to complex economic problems in urban and rural areas.