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Are a C. H. at the time that the fed engaged in that service it was really a involving and over the last forty years we have seen it become really a core part of our payment system in this country whether it's used to rely on direct deposit or bill payment as little talked about in her remarks. We've now come to depend on a C. H. as a core service and it represents some 15% of all the payments transactions in this country I expect this new service could be on a similar path in terms of evolving as adoption grows we have every reason to think based on what we've seen so far that households and businesses want real time payments. And as we develop the service we'll see how it unfolds over the next five ten fifteen years forty years from now. You'll see where it is. I hope so you have my next question to Esther okay so some folks have asked what difference will this service make they point to the fact that they have an app on their phone that enables them to pay friends today anytime so what context could you provide to us about the difference I often hear that. We've we've become used to saying we can do so many things on our phone and clearly you now can move money through various services on your phone and I expect that is going to continue and it could well proliferate the things we're talking about today really represent the infrastructures governor Brainerd said. In her remarks this is really the plumbing of the payment system and so when people are moving money it may feel like you and I are trading money instantaneously but the fact is it has to go through the plumbing in a way that may take much longer for those things to actually come out of my account and get into your account. By updating our infrastructure with this kind of a service we can now realize the full functionality of what real time payments means and I think going forward will only encourage more innovation it'll be built on a foundation that is much more modern than we have today. I was level where refer to this payment system as the plumbing because I never imagined I'd be called the plumber as I got into my. But appreciates a good profession yeah Adam. So well we've heard from many corners of the industry many different perspectives. Many stakeholders have said the fed must build this near real time gross settlement system but that opinion was not unanimous. Can you talk to how the fed made its decision. Yeah this is a very very momentous decision as Esther said we really I. Only get to make this kind of solution once every thirty or forty years so we really did hi engage in very extensive consultations. As Susan said we got like three hundred and fifty comments on the question of the federal reserve service alone. With 90% of those asking us to set up a real time payment service. We deliberated over all of the considerations that we're required to meet under the monetary control act we looked very carefully at all of the considerations that we- all expect of ourselves under our own. Policies and I think at the end of the day are we really have to look into the future. And for me the most decisive consideration was the question ten years from now twenty years from now if we decide not. To invest in real time. Retail payments infrastructure. Will we have carried out our responsibilities to the U. S. financial system in the US economy at least in my case the answer to that was very strongly. When we look back ten years or twenty years from now the greatest regret will if we did not. Invest in this very important infrastructure. Thanks. So my next question is also for you and so the federal reserve as you know has historically played many roles from operator to regulators besides building the new service is there other things that the veterans or could have done to facilitate these broad benefits and nationwide access yes I think we also spent a lot of time and when I say we it's really the conference of presidents the payments committees that are within the conference of presidents and then across the board and the conference of presidents and within the board. We spent a lot of time asking about what could we do other than investing in a service what are the possibilities do we have under authorities and the conclusion as while other central banks have clear regulatory authorities over their payment system we do not have authorities for instance to set prices or to require a service to extend to the last mile. Historically the way that the fed has brought accessibility and safety and efficiency to the payment system is by operating along side of the private sector and that is clear in the way that are authorities read I think hi statutorily arm and it's also. Clear in the historical experience. Thanks Esther. Wow we saw an overwhelming majority of the comments command supportive. We've also heard from a few commenters that. There's an opinion that the private sector already has a service that is sufficient for the country's needs. Could you drive a bit deeper into how we support that service and also how the fed now service would be different from it. So having the private sector involved in real time payments is important it was important to us from the start of our work to facilitate. Understanding how this would look in the U. S. what attributes such a system would have. And from the start really talking to many in the industry to say what ideas do you have how will this get developed and as you said today we have. A single provider for that service and as they develop we played an important role for example making sure that they had access to a special account at the Federal Reserve where they would be able to offer their service. And create settlement on their books to do that we thought that was an important feature to make sure the private sector could provide a service and with today's announcement that Federal Register notice will point to other things so that we could be prepared to do whether that's- expanding the hours. That are settlement services are open we're it's thinking about liquidity management as it relates to how that special account operates. We will continue to see what is possible in terms of facilitating the private sector's role in that. When you talk about what's different about what the fed would be doing in this space though there a number of differences just the mechanics of that account so. When you're the central bank the settlement happens directly in a fed account that's- the way the payment system works today it is where banks hold reserves so their differences just by virtue of who we are and how we operate in that payment system. But I think importantly taken together the private sector and the fed has ensured that the nation has brought accessibility that there's equitable access. And I think importantly for us we think a lot about the security of that system and how resilient that system could be in times of trouble so. Support you will see coming from the fed also recognizing what we would be doing will be filling out other aspects of the payment system. A couple more questions and then I'll take some from the audience and then I have more. At which time a risk. But although Cumae were more than ready to get me off and stately we've seen some articles in the past few months that is that have noted that if the federal reserve builds a new service. It will actually slow down progress. Towards a re achieving faster payments nationwide. Can you share your perspective on today's announcement and its implications for the pace of achieving nationwide reach for faster payments. Yeah so I think we have thought a lot about this question. And of course time to market is a very important consideration. And the private sector has done a good job of getting a system up and running. And again as Esther noted we have. Supported that facilitated that. On for us nation wide reach is really the concept that is. In line with our up public. Of mission. And the question of how long will it take to achieve nationwide reach I think is a quite different question. In answering that question you have to take into consideration odds that we have already the people in this room all of our reserve banks have already built out in infrastructure. Of customer service relationships and connections to the ten thousand. And more depositories around the country and so in many respects odd since we are at the service provider that has been providing those services to the harder to reach institutions. Of four or other services. We're gonna be taking odd that concept of timeliness very much to heart and building out that last mile is part of our considerations of timeliness that we're going to take very seriously. Thanks Esther one more for you know can take a break so we've heard a lot of questions lately on how and you fed service and the private sector will interact much of what we hearing from the public comments as well as news articles public opinion articles. Refers to worry that the two systems will not interoperate. And that that could be detrimental to the goal of people being able to pay in a seamless way. Could you respond to some of these concerns. So again from the start of our engagement with the private sector we knew that inter operability was one of the attributes that broadly people thought would be important and certainly we think it's important this will be a desirable feature as we go forward for this new payment rail. Depending on how the comments come back how we hear from the public on how these features might work I think there are several ways we could achieve inter operability so we often think about just the direct exchange of payments and certainly that would be ideal I think. Whether we get there right away you will have to see the other there are other options we have other payment services today that don't have that direct exchange of information but through joining those services you achieve that in the end so I think there are a variety of ways we can come out this it is possible I think we will continue to work toward how to make that inter operability work on behalf of the public. And how they experience that payment system and it may be a bit of an evolution as we go through this. Okay so let me turn to the audience just to see if there's any questions from the audience we can take. Up I see one back there. I identical you know I think there's a Mike right there for you. Put me down you go you know from a snooze I think they- put my press pass I didn't. Ask you about today's lurch in the markets. Governor and the president George. Does this have any implications of course it's a one day move put. Implications for the future policy. Of course I'll defer to the governor. Hi so I am certainly monitoring developments very closely I have sad hi and I think others have as well that we're committed to on fifteen ing the expansion and I'm certainly monitoring developments for their implications for the outlook and I'll continue to be very attentive. To them. No I this is exactly how policymakers approach it. Markets move quickly it takes some time to see how that evolves and so the best I think that. You can do right now is just a monitor and see how that. Unfolds. Question it it's really makes your head spin all of the unusual circumstances the fed is facing these days you've got negative you'll see you've got the inverted yield curve if you've got. Maybe a hostile a White House. But is there a path for the fed to recalibrate its approach considering all of these. Many influences is the time for some more fundamental kind of but recalibration of policy. What I would also. Yeah I also a few things first let's not forget that you know we have a very clear mandate from Congress in in many respects we are pursuing that mandate and I we have a strong labor market we have the lowest on a plane we pad hi. And. Five decades we also have carefully and very consistently and all supporting the movement of inflation back to its 2% goal on a sustained basis. And relative to a lot of other jurisdictions you know we really are on seeing a lot of progress on those goals that said I think there are some features of the new normal. That are different hi Dan we policy makers may have confronted over the thirty years prior to the crisis. Those features include things like a very low on equilibrium high interest rate that's something that you see around the world inflation oz seems to be a little bit soft relative to that 2% Fifteen to goal that we're trying to achieve underlying trend inflation and then the third thing is that. Inflation seems to be somewhat less sensitive on to resource utilization then it and then it had been in previous periods and so that's the reason that the F. one C. as been engaged on in. A process that we I have a job fed listens we've been all around the country listening to people in community communities including here. I'm just asking how they're experiencing the economy and then we awake for taking out back and asking how do we need to think about our monetary policy framework and there are there some changes that we could be making over the longer run. To make sure that were as a quick to offer the new. Normal that our framework is as effective. For the circumstances of the new normal and that process is on going. The in addition to those factors we note structural change which is often slow moving but has important in packs like demographics. We watch what happens with productivity as technology evolves all of those things will be important influences on the variables that. Are the responsibility of the up on C. to think about and achieving its mandate so this framework review I'm sure we'll offers an opportunity to talk about that to see whether any changes. Are required or whether we simply continued to move forward as we have. Well I know these are exciting topics but of course I want to bring us back to the plumbing. So let's bring back to the funding for a minute. So I we mailing time for one or two more questions but let let me ask you this one we've seen a few articles saying that the fed won't be innovative enough. To offer this new service for faster payments well I know you may disagree with that personally can you share a little bit about your perspective of how you see it differently. So we all fail asked on in our request for feedback this question about how are we going to best promote on innovation in retail payments. And a lot of the commenters and this went really well outside just the banking commenters. But across the payments. Landscape including fin tech firms and merchants on they were really focused on innovation and end user services. Hi and in many respects the comments we received. Were that by providing a- infrastructure layer that would permit. That real time clearing and settlement between. Bank accounts and that that would provide a more neutral and a more fertile foundation for private sector innovators. To innovate in terms of end user services and so in many respects when we think about innovation retail payments. On that same dynamic of the that the federal reserve being the provider of infrastructure. Was seen to be also the most conducive approach off. For innovation and user services. So I think based upon our time that is our last question I want to thank you both for sharing this announcement with us today and for answering these questions I also want to remind folks online in particular that the federated stir notice is available on the boards public website. As well as on fed payments improvement that work through the federated stir notice as they all mentioned we are seeking comments on the fed now service in all aspects of the fed now service and we also plan to engage fairly quickly with the industry to talk about that but now service features and functionality and design so we can. Finalize that quickly and with that as just aren't reminder to make sure you comment I am going to say thank you and thank you to everyone who attended here in person and online and we look forward to working with you as we- go forward in this endeavor