As always, the Governing Council stands ready to use all the instruments available within its mandate to respond to any material change to the outlook for price stability. References Bhattarai, S., Eggertsson, G.B. and Gafarov, B., “Time Consistency and the Duration of Government Debt: A Signalling Theory of Quantitative Easing”, unpublished manuscript, 2014.
*  *  *  I am pleased to speak to a group that has such a distinguished record of identifying crucial issues related to the federal budget and working toward bipartisan solutions to our nation’s fiscal problems. Today I will briefly discuss the fiscal challenges the nation faces and the importance of meeting those challenges for our collective economic future.