short having to work harder to generate the consensus to keep the governance necessary for financial globalisation moving forward in line with the risk. and we can see major challenges emerging. all speeches are available online at www. bankofengland. co. uk / news / speeches one example is artificial intelligence. ten years ago, the potential impact of ai and machine learning on financial firms was discussed in niche conferences as one of those things on the horizon. today, 80 % of firms we regulate use machine learning. the increasing use of ai will pose big societal questions – what kind of decisions can ai be allowed to make, how to protect against ai creating and amplifying biases / discrimination. these are debates which go much wider than the international financial regulatory community, but to which we must contribute. and there are also specific financial - regulatory issues that have cross border implications. for example, whether ai systems could contribute to procyclicality and risk amplification, whether and how they should be used in regulatory capital models, and what should be the standards for the appropriate governance and oversight of decisions made by ai. that is just one example. use of the cloud by financial firms poses similar issues – as does the technology - driven changes that are happening in cross - border payment systems and that present new combinations of risk. the challenges go beyond new technology. regulators and supervisors are increasingly working together to ensure the financial system is resilient to the risks posed by climate change and the transition to a low carbon economy. the regulatory response to this complex financial stability risk is, rightly, multi - faceted. one core element has been reporting and disclosure, on which the fsb has led progress through the task force on climate - related financial disclosures ( tcfd ). but we also need to accelerate work to develop firms ’ and authorities ’ climate - related risk analysis and stress testing capabilities, so as to bring climaterelated financial risks into the heart of decision - making, and ensure that the global financial system plays its part in the transition to net zero. the uk ’ s international financial centre and the eu ensuring that the governance of international finance keeps pace with cross border risk is crucial to both the eu and the uk, integrated as we are in the global financial system. it is of huge importance to the bank of england which is charged with ensuring financial stability. we are home to the largest and most complex financial centre in the world. and it is a truly global financial centre,

jerome h powell : economic outlook and monetary policy review speech by mr jerome h powell, chair of the board of governors of the federal reserve system, at the council on foreign relations, new york, new york city, 25 june 2019. * * * good afternoon. it is a pleasure to speak at the council on foreign relations. i will begin with a progress report on the broad public review my federal reserve colleagues and i are conducting of the strategy, tools, and communication practices we use to achieve the objectives congress has assigned to us by law — maximum employment and price stability, or the dual mandate. then i will discuss the outlook for the u. s. economy and monetary policy. i look forward to the discussion that will follow. during our public review, we are seeking perspectives from people across the nation, and we are doing so through open public meetings live - streamed on the internet. let me share some of the thinking behind this review, which is the first of its nature we have undertaken. the fed is insulated from short - term political pressures — what is often referred to as our “ independence. ” congress chose to insulate the fed this way because it had seen the damage that often arises when policy bends to short - term political interests. central banks in major democracies around the world have similar independence. along with this independence comes the obligation to explain clearly what we are doing and why we are doing it, so that the public and their elected representatives in congress can hold us accountable. but real accountability demands more of us than clear explanation : we must listen. we must actively engage those we serve to understand how we can more effectively and faithfully use the powers they have entrusted to us. that is why we are formally and publicly opening our decisionmaking to suggestions, scrutiny, and critique. with unemployment low, the economy growing, and inflation near our symmetric 2 percent objective, this is a good time to undertake such a review. another factor motivating the review is that the challenges of monetary policymaking have changed in a fundamental way in recent years. interest rates are lower than in the past, and likely to remain so. the persistence of lower rates means that, when the economy turns down, interest rates will more likely fall close to zero — their effective lower bound ( elb ). proximity to the elb poses new problems to central banks and calls for new ideas. we hope to benefit from the best thinking on these issues. at the heart of the review are our