. to be sure, the russian default of august 1998, followed by the collapse of long - term capital management, had more - substantial effects on global markets and posed greater risk to the u. s. economy, which triggered a policy response by the fed in which the federal funds rate was cut 75 basis points between september and november of that year. 8 of note, after economic prospects appeared to stabilize, the fed reversed those cuts in 1999. in recent times, global shocks have also been consequential for u. s. economic prospects and monetary policy. examples include the 2011 – 13 euro - zone recession and the china devaluation and capital flight episode of 2015 and ‘ 16, when worries about a hard landing and renminbi depreciation, respectively, roiled world markets. both of these shocks originated in economies with large footprints in the global economy and financial system, and, as a result, they induced substantial disruptions in global financial markets. during both episodes, u. s. stock markets fell and the dollar appreciated, especially during 2015 and 2016. as ever, these negative shocks were associated with safe - haven flows that pushed u. s. treasury yields down. 9 despite the drop in yields, overall financial conditions in the united states tightened, weighing on aggregate demand. 10 yet, in these episodes, accommodative policy responses in the united states helped ward off actual contractions of u. s. activity. during the 2011 – 13 euro - zone recession, the united states was already pursuing very accommodative policies in the wake of the global financial crisis, but the timing of the maturity extension program and the third phase of u. s. quantitative easing suggests they were helpful responses to the spillovers to the united states from this downturn. 11 for the china episode of 2015 and ‘ 16, federal open market committee ( fomc ) statements from the time indicate that concerns about foreign developments and their effect on u. s. financial conditions were a factor contributing to the delay in previously anticipated policy rate increases, thereby supporting the economy. the message from these recent episodes is not just about the importance of timely policy adjustments by the central bank. it is also about the importance of the enhanced resilience of financial institutions that has been achieved since the global financial crisis. undoubtedly, this resilience helped prevent adverse financial shocks from contributing to a more serious downturn. recent developments let me conclude with some remarks on recent developments. u. s

##mble in responding to incoming data and the evolving outlook. maintaining the trust and confidence of the public is essential to our work. last month, the federal reserve finalized a comprehensive set of new ethics rules to substantially strengthen the investment restrictions for senior federal reserve officials. these new rules will guard against even the appearance of any conflict of interest. they are tough and best in class in government, here and around the world. we understand that our actions affect communities, families, and businesses across the country. everything we do is in service to our public mission. we at the federal reserve will do everything we can to achieve our maximum - employment and price - stability goals. thank you. i am happy to take your questions. 2 / 2 bis central bankers'speeches