In a broader context, the Federal Reserve also shares the responsibility of maintaining the stability of the financial system and containing systemic risks that may arise in financial markets. And in carrying out that responsibility, we have never been confronted with a situation remotely resembling the grave reality of September 11, 2001.
On that morning, sitting in my office in Washington, I watched television with horror as the second plane crashed into the World Trade Center. Not long after, I could see thick smoke billowing above the trees in the direction of the Pentagon.