Incidentally, as I read the 1967 version of this speech, I noted that it referred to the 19 men on the Committee. The first woman joined the FOMC in 1978. I am proud to say that at our next meeting, there will be four women on the Committee.
How can that be explained to someone who is not a central banker? Both central banks and banks can create money through lending to the economy. If the banks are only doing so hesitantly, we can make financing conditions more attractive and so create incentives for more generous lending.