william c dudley : panel remarks at the international symposium of the bank of france remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the international symposium of the bank of france “ central banking : the way forward? ” paris, 7 november 2014. * * * if all goes according to our forecast and the u. s. economy continues to make progress towards the fed ’ s dual mandate goals of maximum sustainable employment and 2 percent inflation, the federal reserve will likely begin to raise its federal funds rate target off the zero lower bound sometime next year. for the united states, the start of the normalization of u. s. monetary policy will be a very welcome development. it will indicate that the u. s. economy has made great strides in healing itself from the damage caused by the u. s. housing boom and bust, and the financial crisis. however, this shift in policy will undoubtedly be accompanied by some degree of market turbulence. moreover, it could create significant challenges for those emerging market economies ( emes ) that have been the beneficiaries of large capital inflows in recent years. what can the federal reserve do to minimize these risks? these are some of the very important issues raised by helene rey ’ s work. let me begin by highlighting some of the key points i will be making. as always, the thoughts i offer today are my own, and should not be interpreted as representing the position of the fomc or the federal reserve system. first, what we may see in terms of market strains and macroeconomic adjustment during this normalization process will not be new. changes in fed policy, and especially the tightening of monetary policy, have often created challenges for countries abroad, especially in emes. second, these countries, as a group, are better equipped today to handle those challenges than at perhaps any time in the past. this reflects the fundamental improvements and stronger policy frameworks that many emes have put in place over the past 15 years. third, given the dollar ’ s role as the global reserve currency, the federal reserve has a special responsibility to manage u. s. monetary policy in a way that helps promote global financial stability. like other central banks, our monetary policy mandate has a domestic focus. but, our actions often have global implications that feed back into the u. s. economy and financial markets, and we need to always keep this in mind. for most of us, the market

and for the engineers and planners, really began, the work of optimising and reviewing the design, while at the same time moving stepby - step ever - deeper into detail with each new phase and passing month. i would like to thank the architect, professor wolf prix, his staff of coop himmelb ( l ) au and all planners and engineers for never giving up, for always fighting passionately for their design and for always finding a way to improve on the different aspects of the building. my thanks also go to drees & sommer, the external project managers, who supported our project team within the ecb in the coordination of all the major and minor details that need to be taken care of and resolved. a crucial situation occurred when the initial tender strategy failed and a new one, more fitting to the changing markets, had to be developed and implemented. as of today, with the start of the actual construction works, the main responsibility for the construction site has passed into the hands of our construction management company, gassmann + grossmann. throughout the last few years, all the parties involved have worked closely together with unfailing energy, determination and conviction to finally make this event possible today. the grossmarkthalle in itself has been yet another challenge : together with the historic preservation authorities of both the city of frankfurt and the state of hesse, our project team and the architect and planners, the structural engineers and restoration experts worked hard on every millimetre of the market hall to gain an insight into its current state, to discuss all details and aspects of its desperately needed restoration and how to convert such a building into an integral part of our institution ’ s premises. i remember one visit by my colleagues and myself to the site when thomas rinderspacher, the ecb ’ s project manager, showed me the new windows that had been developed to improve the insulation of the facade, while preserving the appearance of the old window frames. i am proud of all the work carried out. my fellow - members of the governing council and i were and are being informed regularly about the development and the progress of the project. we are aware of our being a demanding task - master, asking for a perfect building, as well as for sound and transparent processes on the way towards attaining it. we are simply aiming for the best possible building for providing a healthy and safe environment for our staff and visitors, while at the same time ensuring an efficient and effective functioning of the institution.