innovation and other market developments. as you know, the dodd - frank act created a council of regulators, the financial stability oversight council, to coordinate efforts to identify and mitigate threats to u. s. financial stability across a range of institutions and markets. the council ’ s monitoring efforts are well under way, and this new organization has contributed to what has been a very positive atmosphere of consultation and coordination among its member agencies. the council is also moving forward with its rulemaking responsibilities, including rules under which it will be able to designate systemically important nonbank financial institutions and financial market utilities for additional supervisory oversight, including by the federal reserve. for its part, the federal reserve has also made organizational changes to promote a macroprudential approach to regulation. among these changes is the establishment of high - level, multidisciplinary working groups to oversee the supervision of large, complex banking firms an appendix to this testimony provides details on the federal reserve's progress in meeting its responsibilities under the dodd - frank act. bis central bankers ’ speeches and financial market utilities, with a strong focus on developments that have implications for financial stability. we have also created an office of financial stability policy and research to help coordinate our efforts to identify and analyze potential risks to the broader financial system and to serve as liaison with the council. a second major objective of financial reform is to mitigate the threats to financial stability posed by the too - big - to - fail problem. here the dodd - frank act takes a two - pronged approach. the first prong empowers the federal reserve to reduce a sifi ’ s probability of failure through tougher prudential regulation and supervision, including enhanced risk - based capital and leverage requirements, liquidity requirements, single - counterparty credit limits, stress testing, an early remediation regime, and activities restrictions. the federal reserve and other agencies face the ongoing challenge of aligning domestic regulations with international agreements, including the basel iii requirements for globally active banks. these efforts are going well ; in particular, the federal reserve expects to issue proposed rules on the oversight of sifis later this summer and, working with other banking agencies, is on schedule to implement basel iii. ending too - big - to - fail also requires allowing a sifi to fail if it cannot meet its obligations – and to do so without inflicting serious damage on the broader financial system. thus, the second prong of the dodd - frank act ’ s effort to end

janet l yellen : welcoming remarks speech by ms janet l yellen, chair of the board of governors of the federal reserve system, at the “ monetary policy implementation and transmission in the post - crisis period ”, a research conference sponsored by the board of governors of the federal reserve system, washington dc, 12 november 2015. * * * it is my pleasure to welcome you to the federal reserve board ’ s conference on “ monetary policy implementation and transmission in the post - crisis period. ” the conference aims to bring together academic and central bank economists, financial market practitioners, and policymakers to stimulate debate and research on a topic that is critically important to the federal reserve ’ s mission of conducting monetary policy in the pursuit of maximum employment and stable prices. the global financial crisis had profound effects on our economy, and it altered the way many think about monetary policy. at the peak of the crisis and during its immediate aftermath, unconventional monetary policy measures were designed and implemented by the federal reserve and other central banks around the world. the post - crisis period has offered policymakers an opportunity to assess a range of novel policy and operational issues associated with the conduct of monetary policy and the effectiveness of different policy options. specifically, policymakers have to carefully weigh the advantages and disadvantages of alternative monetary implementation frameworks in the presence of new policy tools. moreover, policymakers should be mindful of new channels for monetary policy transmission that may have emerged from the intricate economic and financial linkages in our global economy that were revealed by the crisis. finally, it is crucial to understand the effect of regulations and possible changes in financial intermediation on monetary policy implementation and transmission. the impressive conference program covers the following topics in three sessions : monetary policy implementation, the transmission of monetary policy, and the effect of regulation and financial intermediation on monetary policy implementation and transmission. the presentations and discussions of the 12 academic papers on the conference program will surely provide a foundation for what i expect will be a stimulating discussion of important topics over the next two days. looking ahead to later today, i am delighted that vice chairman fischer will deliver keynote remarks on the exchange rate mechanism in the transmission of monetary policy. tomorrow the conference concludes with two interesting policy panels on the effect of regulations on monetary policy and the “ optimal design ” of monetary policy in the post - crisis world. let me also say that i consider the topics covered during this conference highly relevant for the federal reserve system ’ s ongoing efforts to evaluate potential long - run monetary policy