increased needs in the face of reduced revenues. the combination of highly supportive fiscal policy and monetary policy was critical in driving the initial strong bounceback from the first wave of the pandemic. 3 similarly today, it is vitally important to provide a lifeline to hard - hit households and businesses facing the harsh reality of a resurgent covid second wave as a bridge to the time an effective vaccine will be widely available. the federal reserve is committed to providing sustained accommodation through its forward rate guidance and continued asset purchases to achieve our maximum employment and 2 percent average inflation goals. in parallel, additional fiscal support is essential to bridge past covid ’ s second wave in order to avoid labor market scarring, reductions in crucial state and local services, and bankruptcies. such additional support is critical to turn this k - shaped recovery into a broad - based and inclusive recovery that is stronger overall. as we support a broad - based and inclusive recovery, the board is focused on updating and strengthening cra regulations to better meet their core purpose. you know the associated challenges well, given the trust ’ s mission to close the racial and ethnic wealth gap and the role you play in fostering opportunity and inclusion in communities across chicago. the cra was enacted in response to inequities in access to credit for communities that were redlined as a result of discriminatory government policies and market practices. now, in light of the persistence of systemic credit disparities and in response to changes in the banking landscape, it is time to strengthen and modernize the cra. 1 / 2 bis central bankers'speeches in september, we proposed a framework for reforming the cra that would advance the following principles. 4 first and foremost, the cra should focus on addressing credit disparities and financial inclusion in low - and moderate - income and minority communities to fulfill its core purpose. one way our proposal addresses this first principle is by emphasizing minority depository institutions and community development finance institutions, and we are continuing to look for more ways to achieve this goal. our proposal also makes a special effort to address the challenges of underserved rural communities. a related goal is to ensure that the cra encourages banks to meet the broad spectrum of credit needs of communities. our proposal considers how to evaluate banks across a number of areas, such as a bank ’ s retail lending, which includes their home mortgages and small business loans. it also focuses on essential banking products and services like low - cost checking

, investors downgraded their expectations for the future profitability of investments in emerging asia. the resulting financial flows drove up the prices of u. s. bonds and equities at the same time that asian demand for u. s. exports fell and the u. s. current account deficit widened. globalization and the technological and regulatory changes that helped engender it may also be increasing the international spillovers of macroeconomic policy. in a simple macroeconomic model ( is / lm ), globalization enhances the exchange rate channel of monetary policy. 27 for example, stimulative monetary policy has a greater tendency to weaken a country's currency in a globalized world. this, in turn, has a contractionary effect on trading partners by reducing their exports. on the other hand, globalization implies that, say, a tax cut at home has a greater expansionary effect on trading partners, as consumers spend more of the tax savings on foreign goods. of course this model makes some strong simplifying assumptions about expectations and price adjustment. in more - general models, a broader range of outcomes is possible. thus, the degree to which globalization has these effects remains open to question. does globalization imply a greater need for the international coordination of macroeconomic policies? let me begin my answer by asserting that explicit coordination of policy setting across countries is not likely to happen in the foreseeable future, and i would argue that such explicit policy coordination would not be desirable. policymakers have to be able to react quickly in many circumstances, and it makes no sense to delay needed actions in order to achieve international consensus, particularly when the potential benefits from coordinated action are small relative to the potential costs of delay. 28 experience has shown that the best outcomes are achieved when each country's policy focuses on domestic stabilization. nevertheless, in our interconnected world, it is important for policymakers in different countries to maintain an ongoing conversation. this conversation involves the exchange of information about economic conditions and policy options as well as an opportunity to debate the merits of alternative policies that can lead to improved understanding of the practice of macroeconomic policy. international conversation promotes trust and understanding. it enables us to understand and respond appropriately to developments in each other's economies. clearly, if globalization is changing the nature of policy spillovers across countries, that effect would be an important topic for an international conversation. in closing, i want to thank you again for inviting me to speak. i suspect that you will be among the