Research on the effects  of monetary policy normalisation on the risk-taking channel for investment funds, pension funds, and insurance companies and on the risk of liquidity stress in markets is, I think, necessary for improving our understanding of how to preserve financial stability in the current context. The second issue is the potential spillover effects of monetary normalisation on emerging markets.
The FOMC statement notes that monetary policy will remain accommodative after liftoff in order to achieve “inflation moderately above 2 percent for some time so that inflation averages 2 percent over time.” 16 Even after economic conditions warrant liftoff, changes in the policy rate are likely to be only gradual to support the inflation makeup strategy and maximum employment.