Stanley Fischer: International effects of recent policy tightening Speech by Mr Stanley Fischer, Vice Chair of the Board of Governors of the Federal Reserve System, at the IBRN-IMF conference "The Transmission of Macroprudential and Monetary Policies Across Borders", Washington DC, 19 April 2017. * * * I appreciate your invitation to participate in this afternoon’s panel discussion.
In my remarks, I will discuss how U.S. monetary policy actions affect our foreign trading partners, with particular focus on how foreign economies have responded to the Federal Open Market Committee’s (FOMC) ongoing normalization of policy rates.1  Spillovers from the Fed’s Unconventional Policies Extensive empirical research on spillovers—including by Federal Reserve and International Monetary Fund (IMF) staff members—indicates that spillovers from the actions of major central banks occur through several important channels.2 While the exchange rate is a key channel of transmission and gets a great deal of attention in the public debate about monetary spillovers, it is not the only channel.