Regional President Speech

\ ' <' . .. • $: ~ ~ ~ pleased that so many of you could join us today on thi~~ortant occasion for the Federal Reserve in Omaha. As Bob ~~ut, Hamilton has the Federal Reserve has been a part of -tt.c., ~ community for nearly 67 years, serving financial institutions and-- through them--the people of Omaha and ~~tr Nebraska. We are happy to be in Omaha today to celebrate the start of a new building in your city. But in a broader sense, ~ the symbolic turning of Nebraska soil bere today re-emphasizes the substance of the Federal Reserve's roots in Ornaha. At the same time, the ceremony this morning underline s our commitment to ~ carry out our central banking responsibilities in this rQ~i~ as efficiently as we can. The substantial facility we will build over on Farnam will &t<A/~ do more, though, than simply make ~ more efficient. This new structure will be a fresh symbol of the Federal Reserve's important role in our nation's financial and business life. As many of you know, the Federal Reserve Bank of Kansas City has important responsibilities in monetary policy, bank supervision, and the provision of financi al service s to --. - depository instituti ons, the fede r al gove rnment, a~d t he gene ral publ 'c. But, as Paul Volcker frequently points out, the Federal Reserve is not "just another Federal agency" with all power and influence flowing from its Washington headquarters. As created by Congress in 1913, the Feder a l Reserve ~~~~~ is an imaginative blend of public and privat~ " ~, t;';;/ U",''''/ I~ ~~a unique~ Ther~ regional structure. are 12 Federal ~6hcL~ ~ Reserve Banks--with 25 b~anch s~s c~a~in omaha~cross the r---~. ~ suc~st t~as nation. Creation of quite deliberate. The System was designed to foster a certain independence in judgement and to ~ncourage continuity and professionalism in the central _ ~~ bank. In particular, the regional structure was intended to the Federal Reserve close coptact with both economic developments thrOUg~th:ei~i~' and opinion while insulating the central bank from short-run political concerns. ~ Insulation from partisan political influences is a key element in the Federal Reserve structure. Congress emphasized this~~b; providing members of the Federal Reserve Board with l4-year terms. Moreover, Federal Reserve operations are financed from its own resources and its decisions are not subject to review by the executive branch. Of course, the System is J accountabl: to, and r:£?rts reg~arlY to, the Congress. As ~ ~ ~ may know, the Federal Re:tF-'s independence has been from time to time , 3flQ ba~ EW!!£3?ct; 141: reaffi,rmed as being 7-~e.-( in the broadA interests of the American people. In my judgement, an independ~nt, decentral ized Federal ~ Reserve System ha s served the nation very well during its seven -zr;£ . decades, despitet rather remarkable economic and technological changes in our society s :i;:m:;e ~3. A major reason for the Federal Reserve's successful service to the nation is, in my view, our ability to draw on the diverse experience and sound advice of the men and women from the region who serve as our directors. You know many of these people from right here in your own community. ­ ) i ~~~ ~~~~.-I~ As we at the Kansas Ci ty ~PV4 eLiLt .,. t zboa: na tional monetary policy, or as we make supervisory or operating decisions, it is ~ -z;Ib our tangible links wit~people and communitie s throughout the ~~ region that insure that o~decisions are grounded in reality. That is what the far-sighted creators of the Federal Reserve in tended. So, in large measure, we are celebrating today more than the start of a new construction project in Omaha. We also are acknowledging the tangible and ongoing presence of an independent ~ central bank whose judgements and policies reflect the broad interests of political Bolstered by the understanding and business people in Omaha and throughout the Federal Reserve Bank of Kansas City will continue to respond effectively to the needs of the region and the nation in the years ahead. This new facility we are building in Omaha will contribute importantly to our ability to We thank you for joining us today and we look forward to occasiEns. ~ ~~ ~~ meeting with you on other d ---: J ~ ~ ~4 f ?.r~. ..--J

J. Roger Guffey (1984, April 9). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19840410_j_roger_guffey

@misc{wtfs_regional_speeche_19840410_j_roger_guffey,
  author = {J. Roger Guffey},
  title = {Regional President Speech},
  year = {1984},
  month = {Apr},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19840410_j_roger_guffey},
  note = {Retrieved via When the Fed Speaks corpus}
}