And the Federal Reserve has begun to reduce its sizable holdings of securities, built up through large-scale asset purchase programs (LSAPs) over the past decade. My comments today will focus on the role that asset purchases may play in a central bank’s toolkit for implementing monetary policy. I will briefly review how the Federal Reserve successfully adapted its operating framework to be able to achieve interest rate control with a large balance sheet and began its gradual and predictable balance sheet normalization program. Then, in thinking about the prospective use of asset purchases in providing additional monetary policy accommodation at the zero lower bound in the future, I will reflect on some lessons from the Fed’s experience. Among other lessons, we have learned that asset purchases have clear benefits at the zero lower bound, perhaps with more limited costs than initially raised; that we had greater-than-expected capacity to conduct large purchases without harming market functioning; and that credible communications about use of the balance sheet and expectations for short-term interest rates support adjustments in market pricing and smooth monetary policy transmission. As always, the views presented here are my own and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System. The Federal Reserve’s asset purchases and operating regime The severity of the global financial crisis that began in 2007 challenged central banks to use both conventional and unconventional measures to address the economic effects of the crisis and the sluggish recovery that followed.

Zeti Akhtar Aziz: Opening of Bank Negara Malaysia Beijing Representative Office and initiatives to promote bilateral trade and investment Remarks by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the opening of the BNM Beijing Representative Office, Beijing, 18 November 2013. *  *  *  It is my great pleasure to welcome you to this official opening of Bank Negara Malaysia’s Beijing Representative Office. The opening of this representative office today is an occasion of unprecedented significance for us. This Beijing office is Bank Negara Malaysia’s very first presence in Asia. This is a reflection of the growing importance of China in the global economy and the international financial system and the very significant and longstanding financial and economic ties between Malaysia and China. This momentous occasion also marks the dawn of a new chapter as our bilateral relations transitions and evolves reflecting the significant changes taking place in our respective economies and financial systems. For many decades now, the foundation underpinning the strength and dynamism of our relationship is our ability to continually harness the complementarities that exists between our economies. While bilateral trade has consistently been expanding at double digit growth rates over the recent two decades, the breadth and depth of our relations have also evolved and expanded into greater financial linkages. In parallel to our growing economic ties, our financial institutions have also ventured into each financial systems, further strengthening our financial and economic connectivity.