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Speech
Modern Central Banking: Monetary Policy Implementation and Communication
Speech to the Institute of International and European Affairs (IIEA), Dublin, Ireland, November 13, 2025, 1:00 p.m. GMT (5:00 a.m. PT), by Mary C. Daly, President and Chief Executive Officer, Federal Reserve Bank of San Francisco.
Speech
The New Stone Soup
Remarks at the Iveagh House Lecture, Dublin, Ireland, by Mary C. Daly, President and CEO, Federal Reserve Bank of San Francisco, February 10, 2020.
Journal Article
The political origins of Section 13(3) of the Federal Reserve Act
At the height of the financial crisis of 2007-09, the Federal Reserve conducted emergency lending under authority granted to it in the third paragraph of Section 13 of the Federal Reserve Act. This article explores the political and legislative origins of the section, focusing on why Congress chose to endow the central bank with such an authority. The author describes how in the initial passage of the act in 1913, Congress demonstrated its steadfast commitment to the ?real bills? doctrine in two interrelated ways: 1) by limiting what assets the Fed could purchase, discount, and use as ...
Journal Article
Evaluating Monetary Policy with Inflation Bands and Horizons
Inflation targeting has become the dominant way countries approach setting monetary policy goals. However, central banks differ in how they conduct that policy and how they evaluate their success in meeting a stated inflation goal. A new assessment method combines a percentage range around a target, known as an inflation tolerance band, with central banks stating how long it will take for high or low inflation to return to that range, known as a time horizon. Comparing previously projected horizons with realized horizons can be used to evaluate policy success.
Discussion Paper
AI’s Macroeconomic Challenges and Promises
In the third quarter of 2025, America’s largest tech firms for the first time spent more on capital investment than they earned from operations. The implication is that AI, a technology with the potential to make the economy more productive, is, for now, absorbing resources faster than it is generating returns. This post discusses how the tension between AI’s long-run promise and its short-run costs affects the outlooks for inflation, real activity, and financial stability.
Journal Article
Modern Central Banking: Monetary Policy Implementation and Communication
Central banks set policy to support the economy, provide liquidity, and promote financial stability. Modern central banking requires adaptation to current demands and a framework that fosters agility and readiness. Accordingly, central banks have used their balance sheets as policy tools over the past two decades. These tools demand clear communication to the public. The following is adapted from remarks presented by the president of the Federal Reserve Bank of San Francisco at the Institute of International and European Affairs in Dublin, Ireland, on November 13.
Journal Article
Dynamic Central Bank Communication
Central banks have a responsibility to share information in ways that improve the public’s understanding. This communication must be consistent enough that people can follow, and dynamic enough that it can adjust to the circumstances that are faced. Federal Reserve communications over the past 30 years have evolved to become significantly more transparent. The following is adapted from remarks presented by the president of the Federal Reserve Bank of San Francisco at the Western Economic Association International 100th Annual Conference in San Francisco on June 22.
Journal Article
Forward-Looking Policy in a Real-Time World
Restoring price stability is a key part of the Fed’s mandate, and it is what the American people expect. Achieving it will take time and a broad view of economic conditions. Policymakers have to respond to an economy that is evolving in real time and prepare for what the economy will look like in the future. The following is adapted from remarks by the president of the Federal Reserve Bank of San Francisco to Griswold Center for Economic Policy Studies at Princeton University on March 4.
Journal Article
The New Stone Soup
Countries around the globe face slow growth, low real interest rates, and persistently low inflation. This makes economies less resilient and less able to offset everyday shocks with traditional tools. Policymakers must actively look for outside perspectives and be courageous enough to take action in times of uncertainty. The following is adapted from a speech by the president and CEO of the Federal Reserve Bank of San Francisco delivered as part of the Iveagh House Lectures at the Irish Department of Foreign Affairs and Trade in Dublin on February 10.
Working Paper
Foreign Reserve Management and U.S. Money Market Liquidity: A Cost of Exorbitant Privilege
We show theoretically and empirically that the dollar’s status as the global reserve currencycan lead to economically significant changes in U.S. money market liquidity. We develop amodel in which U.S. money market spreads respond to foreign central banks’ exchange-ratemanagement decisions. Foreign central banks remove liquidity from U.S. money markets andcause spreads to widen by selling Treasuries to supply liquidity to their financial systems.Our analysis focuses on the major oil exporting countries with fixed exchange rates becausetheir foreign-exchange market interventions are ...