On the monetary policy side, we at the Fed have maintained unusually low levels of short-term interest rates and engaged in large-scale asset purchases. These measures have fostered a sharp improvement in financial market conditions. On the fiscal side (that is, government spending and taxes), the economy has been supported by the shift in policy to help support growth. In particular, the temporary reduction in payroll taxes could have a particularly strong impact on growth during the first part of the year. Third, growth abroad – especially among emerging market economies – has been strong and this has led to an increase in the demand for U.S.-made goods and services. Over the four quarters of 2010. real exports rose 9.2 percent. After a disappointing performance earlier in the year, U.S. net exports surged in the fourth quarter. The firming in economic activity, in short, is due both to natural healing and past and present policy support. In this regard, it is important to emphasize that we at the Federal Reserve have been expecting the economy to strengthen. We provided additional monetary policy stimulus via the asset purchase program to help ensure that the recovery regained momentum. A  BIS central bankers’ speeches  3  stronger recovery with more rapid progress toward our dual mandate objectives is what we have been seeking. This is welcome and not a reason to reverse course. Yet, we must not be overly optimistic about the growth outlook.
Of course, Queens is special not just for its central location, but also for its extraordinary diversity. Queens continues to serve as a land of opportunity for immigrants from all over the world. Roughly 46 percent of Queens’ population is foreign born – more than four times the national average and higher than any other county in the country with the exception of Miami-Dade. Sizable communities of immigrants from countries ranging from Columbia to Korea, Ecuador to Egypt, Greece to Guyana, and Italy to India have made Queens their home. This morning I will talk to you about national and regional economic conditions. As always, what I have to say reflects my own views and not necessarily those of the Federal Open Market Committee (FOMC) or the Federal Reserve System. Introduction to the New York Fed By way of introduction, let me start with a synopsis of what the New York Fed is, what we do and what makes my job so interesting. The New York Fed is part of the Federal Reserve System, America’s central bank, and was created by Congress in 1913. With this act, Congress delegated to the Fed System its constitutional authority to manage the supply of money in the nation’s economy. Congress designed the central bank to be decentralized, representative of all regions of the country and independent of the political process.