the term rate, last updated may 4, 2022. 2 john c. williams, a solution to every puzzle, remarks at the 2020 u. s. treasury market conference ( via videoconference ) ( september 29, 2020 ). 3 john c. williams, preparing for the unknown, remarks at the 2021 u. s. treasury market conference ( via videoconference ) ( november 17, 2021 ). 4 john c. williams, financial stability and monetary policy : happy marriage or untenable union?, presentation to the deutsche bundesbank conference, eltville am rhein, germany ( june 5, 2014 ). 5 john c. williams, 2015. measuring monetary policy's effect on house prices, frbsf economic letter, no. 2015 - 28, federal reserve bank of san francisco. 6 board of governors of the federal reserve system, statement regarding repurchase agreement arrangements, july 28, 2021. 7 inter - agency working group for treasury market surveillance, enhancing the resilience of the u. s. treasury market : 2022 staff progress report, november 10, 2022. 8 financial stability board, non - bank financial intermediation, as updated november 10, 2022. 4 / 4 bis - central bankers'speeches

anyone wants to watch is the sequel, " libor : the next generation. " the libor transition is tangible proof of what can be accomplished when all stakeholders - public and private - work together and persevere, against all odds. that sense of purpose, collaboration, and accomplishment gives me hope for the main topic of the conference today : treasury market resilience. and yes, there is much work to be done. 1 / 4 bis - central bankers'speeches before i go on, here's a reminder that you know all too well i cannot leave behind - and that's the usual disclaimer that the views i express are mine alone and do not necessarily reflect those of the federal open market committee ( fomc ) or anyone else in the federal reserve system. well - functioning markets and monetary policy i've long made the case that a well - functioning u. s. treasury market is critical to our economy, and, in fact, the entire world. 2 3 but now, i'd like to take it a step further to explain how critically important a resilient financial system - and especially a resilient u. s. treasury market - is for monetary policy. in the current environment of high global inflation, central banks around the world have been taking strong, decisive actions to restore price stability. restoring price stability is of paramount importance because it is the foundation of sustained economic and financial stability. price stability is not an either / or, it's a must have. for monetary policy to be most effective, financial markets must function properly. monetary policy influences the economy by affecting financial conditions, with the treasury market at the center of it all. if the treasury market isn't functioning well, it can impede the transmission of monetary policy to the economy. the great debate these issues recall a longstanding debate over what should be done when there is a trade - off between monetary policy and financial stability goals. in the decade before the pandemic, this debate occurred in the context of inflation running persistently below the fomc's long - run 2 percent target. 4 on one side, there were those who argued that an extended period of accommodative policy aimed at boosting inflation would contribute to a buildup of asset prices, leverage, and risk - taking that would ultimately undermine financial stability. they concluded that policy should lean against the wind of financial stability risks, even at some cost to achieving the price stability goal