11 See Lael Brainard (2017), “Cross-Border Spillovers of Balance Sheet Normalization,” speech delivered at the National Bureau of Economic Research’s Monetary Economics Summer Institute, Cambridge, Mass., July 13, https://www.federalreserve.gov/newsevents/speech/brainard20170713a.htm. -7Achieving the Inflation Target The apparent slippage in trend inflation below our target calls for some adjustments to our monetary policy strategy and communications.
FINANCIAL MARKETS PROSPECTS IN THE YEAR AHEAD A. THE US DOLLAR DOMINATES FOREIGN EXCHANGE MARKETS  I turn now to foreign exchange (FX) prospects for 2017. 2016 was the year that shook up currencies: sterling took a beating, while the dollar continued to march ahead; in real effective terms it has appreciated by more than 6% since August (Figure 8).