I would like to thank Hal Scott for inviting me to address this conference. The financial system is built on trust, which, history shows, from time to time breaks down as a financial panic develops. Fortunately, major panics are relatively rare, but as we all know following the Great Financial Crisis, when they do occur they can be extremely destructive of economic activity.
During the Great Financial Crisis, the Federal Reserve System worked together with the Treasury and other parts of the U.S. government to limit the damage caused by the crisis.