we're often reminded of ringo starr as we get by with some help from our friends, and i am not aware of any hidden messages, but some of the statements made more sense if you read them backwards. now to a more serious subject. following the worst financial crisis of the last 70 years, we are experiencing a recession that will surpass those of the 1970's and 1980's. the response at the fed has been to look for programs different from the past. these programs are put in place for these exceptional circumstances. they will have to be changed as we returned -- we return to normal. this morning i would like to discuss what underlines these policies, and some issues that we must address. these are my views and not necessarily those of my colleagues. in the current crisis, traditional monetary policy has reached its limits. one obvious way is that the federal fund target rate has been taken to essentially zero. they cannot do this when further accommodation is warranted. the second has to do with the functioning of the financial markets. participants seem to align the risk adjustment along

meetings we're often reminded of ringo starr as we "get by with a little help from our friends."ly i'm not aware of any secret messages embedded in statements like "i buried the phillips curve" but i have been told that some of our fmoc statements make more sense if you lead them backwards. i don't agree with that. but all right. now to a more serious subject. following the worst financial crisis of the past 70 years, we are currently experiencing a recession that will likely match or surpass those of the 19 70's and 80's in-depth and varyity. these exceptional circumstances have posed great challenges for policymakers. for us at the fed the response has been to pursue a variety of aggressive and innovative approaches that divider significantly from the standard policies of the past. the programs we have put in place are designed specifically for these exceptional circumstances. as such they will have to be unwound as our financial system return is more clearly headed towards sustainable growth and price stability. this morning i would like to discuss the precepts that underlie t