Simon Potter: Confidence in the implementation of US monetary policy normalization

Remarks by Mr Simon M Potter, Executive Vice President of the Markets Group of the Federal Reserve Bank of New York, at the 23rd EMEAP (Executives' Meeting of East Asia-Pacific Central Banks) Governors' Meeting, Manila, Philippines, 4 August 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Accompanying slides

Thank you for the invitation to participate in today's discussion about globalization and its effect on monetary policy in emerging market economies.

U.S. financial markets, and the U.S. monetary policy stance, can significantly influence global financial conditions and capital flows. In no small part, this reflects the extensive use of the dollar in international trade and in financial transactions conducted outside the United States. The pricing and availability of financing for business activity around the world-even activity that does not directly relate to an American borrower, lender, producer, or consumer-often are influenced by conditions in U.S.-dollar money markets. And, understandably, the evolution and stability of dollar funding markets are a focus of attention for many economic policymakers around the world, especially here in the East Asia-Pacific region. As always, the views I will express today are mine alone and do not necessarily reflect those of the New York Fed or the Federal Reserve System.