Welcoming remarks by Governor Waller, June 22, 2026

Hi, I'm Ian and I work for the Federal Reserve, the central bank of the United States. The Federal Reserve system consists of three main entities that perform key functions that serve the public and promote the health of our economy and the stability of our financial system. These key entities are the Federal Reserve Board of Governors, 12 Federal Reserve Banks operating around our nation, and the Federal Open Market Committee based in Washington DC. The Board of Governors is the governing body of the Federal Reserve System. It's an agency of the Federal Government that reports to and is directly accountable to Congress. The board consists of seven members or governors who are nominated by the president of the United States and confirmed by the Senate. Governors are appointed for 14-year terms. The board of governors oversees and sets policy direction for the system, including 12 Federal Reserve banks located around the country, which take the pulse of the nation's economic health from a regional perspective. The 12 reserve banks represent different geographic regions or districts and were set up based on regional economic considerations. Although supervised by the Federal Reserve Board, the Reserve Banks operate independently in many respects. The Reserve Banks carry out a number of core system functions such as supervising and examining commercial banks and other financial institutions, enforcing compliance with federal consumer protection and fair lending laws while promoting local community development and lending to depository institutions to ensure crucial liquidity in the financial system. They and the board also play a key role in another primary Fed function: fostering the safety and efficiency of our nation's payment systems, including distributing currency and coin to banks, operating electronic payment systems, and clearing our checks. In addition, the Reserve Banks act as the government's bank, providing services such as maintaining the Treasury Department's transaction account and issuing and redeeming US government securities. They also act as a bank for banks by providing key financial services to banks, thrifts, and credit unions. The reserve banks also provide a wealth of information on conditions across the nation—information that is vital to formulating a national monetary policy that helps maintain a healthy US economy and a stable financial system. The board and the reserve banks together help ensure that consumer and community voices are heard at the central bank through consumer-focused outreach, research, and analysis. This helps keep the Federal Reserve's actions, policies, and decision-making attuned to what's going on in American households, communities, and businesses, which are the foundation of our economy. The third key Fed entity is the Federal Open Market Committee or FOMC, which brings together representatives from the board and the Reserve Banks to consider the state of the US economy and set a course for our monetary policy in a manner that seeks to promote an economy that works for all Americans. The 12-member FOMC establishes an appropriate position or stance for monetary policy to help move the economy towards two essential mandates set for the Fed by Congress: promoting maximum employment and price stability. This occurs mainly through the FOMC's influence on interest rates and credit conditions, which can significantly impact financial conditions, including economic productivity and even spending and investment decisions by households, communities, and businesses. Working together, these three key Fed entities and the unique Federal Reserve system structure established by Congress more than a century ago help promote conditions resulting in a strong, healthy, and sustainable economy. For more information on how the Fed functions, visit federalreserve.gov and click on About the Fed. Across the United States, the Federal Reserve through its Federal Reserve Education Program helps people understand how the economy works so consumers have the tools to make sound financial decisions. Through this education program, teachers have access to classroom-ready online resources for students from kindergarten to college: videos, classroom lessons, online education, publications, and more. These resources are all free for educators to use in their lesson plans or as they see fit. Many of the Federal Reserve System's regional reserve banks, located in 12 districts across the nation, also offer in-person and online professional development that allows educators to deepen their knowledge and hone their craft when it comes to economics, personal finance, and more. At the board and reserve banks, students also get hands-on opportunities like internships and participation on student boards, which introduce them to key economics concepts and potential careers in economics and finance. Consumers are empowered to make sound financial decisions through the availability of easy-to-understand resources that explain personal finance concepts, the broader economy, and the Federal Reserve's role in it. Federal Reserve Education is committed to equipping educators, educating students, and empowering consumers when it comes to understanding and participating in our evolving economy. For more information, visit federalreserveeducation.org to find links to resources and reserve bank programs offered near you.

Good morning and welcome to the fifth conference on the international roles of the dollar. We are delighted to host you for the next two days and have researchers and policy makers and market participants meet once again to discuss this significant topic. I also want to thank our colleagues at the Federal Reserve Bank of New York for co-hosting this event and for hosting the excellent conference last year. This conference marks its half-decade birthday with this event. The first conference was one of the very early conferences when we reopened from COVID. As some of you may remember, the world has changed considerably since then and in ways that make this topic even more central. As this audience knows, the international monetary system is in a period of profound change. Many of the foundations that have long supported the US dollar's global prominence, including the strength of the US economy, the depth of its financial markets, and the confidence in its institutions remain firmly in place. Yet, in the ways that people and businesses access, transfer, and use dollars, these are evolving rapidly as new technologies reshape financial intermediation. These changes raise important questions about how the dollar's international role may develop in the years ahead. Financial innovation has the potential to expand access, improve efficiency, and foster competition while also creating new connections between emerging platforms and traditional financial institutions. At the same time, rapid change can introduce new vulnerabilities, underscoring the importance of policy frameworks that preserve trust and resilience without unnecessarily constraining innovation. All these issues will be the topic of today. But any comment today by a Federal Reserve official would not be complete without acknowledging the loss we have experienced with the passing of former Chairman Alan Greenspan. He was a giant. I and a number in this room I imagine have had the privilege of working with him. I was a young economist in the front lines of the work he did identifying the fundamental shift in productivity, and we are at such a moment again now with technology and the changes in the world, and seeing those changes manifest critically in financial and payment system space. All of us must channel the vision and the flexibility and the openness to change that was embodied by Alan Greenspan at that time, as well as a dedication to central banking and the international role of the dollar. Given the focus of this conference, it is particularly appropriate that Governor Chris Waller be our opening speaker. For a number of years, Governor Waller has been a key thought leader in this area, also looking carefully for signs of fundamental change. He has thought carefully and originally on the role of technology in changing our payments infrastructure, on the impact of innovation in currency, and the effects of these changes on the use of the dollar domestically and internationally. So without further ado, please join me in welcoming Governor Waller to kick off the next day and a half.

Great introduction. Let us start the first session of the day.