It cannot subordinate its legal mandate of maximum employment and price stability in the United States to alternative international goals. But, given the role of the United States and the U.S. dollar in the global economy and financial system, the Federal Reserve is—and indeed, needs to be—mindful of the international effects of its policy. That is because those consequences can have important potential spillbacks to the U.S. economy and financial markets. The bond market “taper tantrum” of 2013 highlighted that prospective changes in U.S. monetary policy could affect the EMEs—particularly those with existing vulnerabilities—and how those consequences, in turn, could spill back to the United States. This episode underscored the need for clear communication and transparency around U.S. policy so that expectations can adjust smoothly and be appropriately calibrated to what is likely to occur. As you know, the Federal Reserve has become increasingly transparent in recent years, in part to mitigate such risks. Good communication and transparency is always important during periods of conventional policy normalization. But, good communication and transparency may be even more important when one begins to unwind unconventional monetary policy actions, such as balance sheet policies with which we have little prior experience. Moreover, I would surmise that adjustments to balance sheet policies undoubtedly affect asset prices in ways that differ from changes in short-term interest rates. Earlier this month, we announced an addendum to the FOMC’s Policy Normalization Principles and Plans.3 In this addendum, we spelled out how the balance sheet normalization program would work.

Today, you are gathered here to deliberate on current trends, challenges and opportunities in building a social enterprise ecosystem and to help social enterprises and SMEs to scale up and create social impact, under the timely theme of “Think Social -Produce Social - Buy Social”. I believe this conference would be an effective pathway, particularly for emerging and prospective entrepreneurs to explore new markets for social goods and services and also an opportunity to share knowledge on successful social ventures at both local and global levels. You are all aware that maintaining a stable macroeconomic environment through economic and price stability and financial system stability are the core objectives of the Central Bank. Promoting regional development is one of the agency functions of the Central Bank. Promoting social enterprises is therefore, associated with the broader objectives of the Central Bank. In that context, the Central Bank, on behalf of the Government, has a mandate for targeted lending to the microfinance, SME and agriculture sectors, as well as youth and women. In implementing this mandate, the Central Bank has been facilitating and implementing refinance schemes, interest subsidy schemes and credit guarantee schemes targeting the MSMEs. 2  In addition, the Central Bank has embarked upon developing a National Financial Inclusion Strategy (NFIS), to introduce an evidence-based, prioritized, better resourced, and more comprehensive approach to expanding access to financial services. This would be an essential policy tool that will coordinate and implement cross-cutting actions and reforms, to increase financial inclusion in the country.