global economy than i currently anticipate. i am closely monitoring global economic and financial market developments to assess their implications for my outlook and the balance of risks. u. s. monetary policy in a global environment thus far, my remarks have focused on the u. s. outlook and the risks relative to this outlook. this focus is appropriate. like other central banks, our monetary policy mandate concerns domestic objectives : maximum sustainable employment and price stability. our monetary policy actions, however, often have global consequences that, in turn, influence the u. s. economy and financial markets. at the same time, external factors can impact the monetary policy transmission mechanism in the u. s. and influence the effectiveness of our monetary policy in achieving our objectives. we cannot appropriately calibrate policy without keeping these spillover and feedback effects in mind. in some cases, these effects can be significant. an example is the market volatility we saw in the spring and summer of 2013 during the so - called “ taper tantrum. ” in the u. s., we saw a spike in treasury yields, with the 10 - year rate rising by more than 100 basis points from early may of that year before peaking in september. financial markets in emerging market economies ( eme ) were hit hard as well, with declines in equity prices, a widening in sovereign debt spreads and a sharp increase in foreign exchange volatility. volatility in eme financial markets re - emerged last summer and has continued into this year. for emes as a group, declines in equity prices and currency values have been larger than what we experienced during the taper tantrum. the recent episode, however, appears to largely reflect concerns about risks emanating from emes themselves, rather than concerns about the direction of fed policy. three related concerns appear to be at the forefront. first, there has been a broad - based slowdown in eme growth. this slowdown is not new. each year since 2012, eme growth has come in well short of expectations that existed at the start of the year. it is difficult, however, for market participants to recognize and adjust to large structural shifts in real time. there is still considerable uncertainty about the trajectory of long - term eme growth, and therefore the appropriate pricing of eme financial assets. in that context, heightened market volatility is not surprising. second, this slowdown in eme growth is happening after a long upswing in credit expansion

##ility are of the essence. demands from customers change, expectations from shareholders fluctuate and the regulatory landscape you work within will continue to evolve to keep pace. constant change – and commitment to evolution – is not a choice. it is the only way to survive, stay competitive and stay safe in a complex and vulnerable world. as it relates to cybersecurity, i believe we are at a pivotal moment : we know there is an issue ; we will work with you on fully understanding the scope and breadth of the risk ; we will be pragmatic and add value ; we are looking at this holistically ; and our goal is to come out with a set of next steps that will benefit all of us, including protecting the financial system and the u. s. economy as a whole. we need to address cybersecurity before we see a catastrophic event, not analyze it afterwards. thank you. bis central bankers ’ speeches