At this point, the evidence does not indicate that such vulnerabilities pose a significant threat, but we are carefully monitoring developments in this area. U.S. monetary policy spillovers and global interest rates As we consider the decision of policy rate normalization, we are mindful of possible spillovers to other economies, including emerging market and developing economies.
In an interconnected world, fulfilling the Federal Reserve’s objectives under its dual mandate requires that we pay close attention to how our own actions affect other countries and how developments abroad, in turn, spill back into U.S. economic conditions.