rates and spreads, and that they will continue to do so. i view fluctuations in term money market rates of the magnitudes seen recently as normal parts of market functioning during a period of structural change. wholesale dollar funding, though more expensive, has remained readily available both in the united states and abroad. importantly, there are no signs of worsened counterparty concerns among banks, and spreads in the fx swaps market in dollar and other advanced - economy currency pairs have tightened in recent months, demonstrating that foreign firms that wish to obtain dollars by providing foreign currency effectively as collateral can do so on reasonable terms. that said, i do recognize that capital flows to emerging market economies have diminished in recent months. but, this shift appears to be largely driven by divergence in nearterm growth momentum, which has supported the dollar and triggered some pullbacks in portfolio flows and reduced borrower demand, and not by general dislocations in the availability of short - term dollar funding. we will continue to monitor developments in u. s. and global dollar funding markets closely, as we always do. in this regard, our ongoing dialogue with fellow central bankers, including through meetings such as this one, provides us with very valuable insight and perspective. as part of the new york fed ’ s ongoing engagement in and commitment to the region, we are pleased to be partnering with bank indonesia on a joint central banking forum, which will take place prior to the 2018 annual meetings of the international monetary fund and world bank group in bali in october. this forum will highlight economic and monetary policy developments in the united states and emerging markets as well as geopolitical and technological trends and their implications for central bankers. we hope that you and members of your delegation will be able to join us for this event. concluding remarks to conclude this discussion : i remain highly confident that the fomc ’ s framework for the normalization of the stance of monetary policy — both in the overnight market and in the balance sheet — will continue to proceed smoothly, without unnecessary surprise, disruption, or volatility in financial markets. the monetary policy implementation framework continues to provide the fomc with excellent control over overnight money market rates, and has proven its ability, including recently through the technical adjustment, to flexibly respond to new developments. although term money market rates have fluctuated recently in response to a variety of drivers, these markets continue to act as a deep and liquid source of wholesale funding to firms around the world while appropriately incorporating the f

five years, the fed and, dare i say, many other central banks have become much more interventionist. i do not think this is a particularly healthy state of affairs for the central banks or our economies. the crisis in the u. s. has long passed. with a growing economy and the fed ’ s long - term asset purchases coming to an end, now is the time to contemplate restoring some semblance of normalcy to monetary policy. in my view, the proper role for monetary policy is to work behind the scenes in limited and systematic ways to promote long - term growth and price stability. but since the onset of the financial crisis, central banks have become highly interventionist in their efforts to manipulate asset prices and financial markets in general as they attempt to fine - tune economic outcomes. this approach has continued well past the end of the financial crisis. while the motivations may be noble, we have created an environment where “ it is all about the fed. ” market participants focus entirely too much on how the central bank may tweak its policy, and central bankers have become too sensitive and desirous of managing prices in the financial world. i do not see this as a healthy symbiotic relationship for the long term. if financial market participants believe that their success depends primarily on the next decisions of monetary policymakers rather than economic fundamentals, our capital markets will cease to deliver the economic benefits they are capable of providing. and if central banks bis central bankers ’ speeches do not limit their interventionist strategies and focus on returning to more normal policymaking aimed at promoting price stability and long - term growth, then they will simply encourage the financial markets to ignore fundamentals and to focus, instead, on the next actions of the central bank. i hope we can find a way to normalize the role of monetary policy to one that is less interventionist, less discretionary, and more systematic. i believe our longer - term economic health will be the beneficiary. bis central bankers ’ speeches