buy mortgage - backed securities ( mbs ). in addition, with regard to forward guidance, the committee said that, first, it intends to continue buying mbs and other assets until it sees a substantial improvement in the outlook for the labor market. 2 second, the committee stated that it expects a highly accommodative stance of monetary policy to remain appropriate for a considerable time after the economic recovery strengthens. and third, the committee noted that it currently expects to hold the federal funds rate at exceptionally low levels at least through mid - 2015, about a half - year longer than previously announced. the three elements of forward guidance that were adopted by the fomc in september 2012 would have been unthinkable in 1992 and greatly surprising in 2002, but they have, in my view, become a centerpiece of appropriate monetary policy. to better explain my views i am indebted to members of the board staff – jon faust, thomas laubach, and john maggs – who contributed to the preparation of these remarks. the september fomc meeting statement further indicates that the committee will take account of the likely efficacy and costs of such purchases in determining the size, pace, and composition of its asset purchases. see board of governors of the federal reserve system ( 2012 ), “ federal reserve issues fomc statement, ” press release, september 13. bis central bankers ’ speeches regarding the fomc ’ s forward guidance, i will first discuss how it fits into the committee ’ s broader thinking and communication about monetary policy. the fomc took a major step to explain this thinking last january when it issued for the first time a “ statement of longer - run goals and policy strategy. ” 3 this statement provides a concise description of the fomc ’ s objectives in conducting monetary policy and the approach the committee considers appropriate to achieve them. i will present my views on the implications of this statement for monetary policy in current circumstances. i will then discuss several approaches the fomc has recently considered to enhance its communications to make its policy more effective in this challenging situation. let me emphasize that the views i express here are my own and do not necessarily represent those of my colleagues in the federal reserve system. the case for central bank transparency to fully appreciate the recent revolution in central bank communication and its implications for current policy, it is useful to recall that for decades, the conventional wisdom was that secrecy about the central bank ’ s goals and actions actually makes monetary policy more

- defined underlying markets and are consistent with internationally - recognized standards are available. i want to thank the many institutions here today, and the many more that have played equally constructive roles, for their efforts in this process. this month marks the one - year anniversary of sofr and is close to the one - year anniversary of the other new risk - free rates. over that year, we have seen the establishment of new futures markets, cleared swap markets, and debt markets based on these new rates. sofr futures, which did not exist a year ago, have seen more than $ 7 trillion in cumulative notional volumes. this has been a crucial development for market liquidity and is helping to spur the growth of sofr swaps and other derivative markets. and sofr is being used in cash products, with $ 81 billion in sofr - linked debt issued over the past year. new markets do not arise overnight — in normal circumstances they can often take decades to develop. what has been accomplished over the past year is remarkable. at the same time, we have only a little over two and a half years until the point at which libor could end, and the transition needs to continue to accelerate. the private sector needs to take on this responsibility, and we expect you to do so. the federal reserve ’ s supervisory teams are including the transition away from libor in their monitoring discussions with large firms. the federal reserve will expect to see an appropriate level of preparedness at the banks it supervises. as the alternative rate reference committee ( arrc ) continues to make progress on industry - led 1 / 2 bis central bankers'speeches approaches to the transition, the transition paths away from libor will become clearer for banks of all sizes. while we expect you to take on this responsibility, we in the public sector must also recognize our need to help. the fsb has supported this transition globally, and, in the united states, the financial stability oversight council has supported the arrc ’ s work. it is important that we continue to do so, and i want to thank you all today for the thoughts you have shared with us on this transition and what is needed to make it succeed. 2 / 2 bis central bankers'speeches