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“We have partial approval in China, and hopefully we’ll have a full approval in China around February or March or so,” Musk told the company’s annual general meeting on Thursday.

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China’s industry ministry did not immediately respond to a Reuters request for comment.

China is a major market for Tesla, but its share has slumped to 8% as of last quarter compared with a peak of 15.4% in the first quarter of 2023, as local brands win over customers with similar driving assistance features, often at no extra cost.

The Tesla system, known as FSD for short, has been partially approved in China since February. Before that Tesla owners could use a less advanced and cheaper autopilot option.

However for years, some Chinese Tesla buyers opted to pay 64,000 yuan ($9,000) for FSD on the expectation that a full roll-out would not take long, making its failure to gain approval a major source of friction between owners and the automaker.

With partial approval, FSD in China falls short of its capabilities in the United States. It is not permitted to change gears, meaning the vehicle can’t complete a trip from one parking space to another completely on its own in China. The system has also had difficulties in identifying local traffic signs on Chinese roads.

($1 = 7.1230 Chinese yuan)

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Throughout October, employees at Microsoft UK marked Black History Month (BHM) with a series of events designed to celebrate, educate, and inspire. The theme was ‘Standing Firm in Power and Pride’.

The month’s theme informed various sessions, from a panel discussion on neurodiversity, to a marketplace fair showcasing Black-owned businesses. There was also a talk about 1963 Bristol Bus Boycott delivered by BBC broadcaster Primrose Granville, plus a first-ever charity tennis tournament for DKMS, a blood cancer charity.

Embrace, Microsoft’s 600-strong employee community dedicated to celebrating, supporting and advancing ethnicity, hosted a vibrant closing celebration that brought employees together in person and online.

“Our mission is to foster inclusion and excellence to empower and enable Black under-represented talent, driving the next digital revolution,” BHM organisers Dedun Oyenuga and Anjola Adebowale told the audience.

During the celebration there were moments of reflection, inspiration, and connection, highlighting the achievements, stories, and voices that shaped the month’s activities.

“This is important,” said Embrace Co-Chair, Jeramie Sutton. “And not just today, not just in our celebration for Black History Month. We want to create environments where we can come together, connect, and stand firm in power and pride.”

And Amber Joyce, the other Embrace Co-Chair, said: “No matter the challenges we’ve had and the challenges we’re facing, we stand firm and proud as Embrace. We have our mission to succeed, progress, inspire, celebrate and educate on ethnicity at Microsoft.”

‘Two powerhouses’

Two of the UK’s most influential Black leaders, Pam Maynard, Chief AI Transformation Officer for Microsoft Customers & Partners, and Jacky Wright, former Microsoft Chief Digital Officer and now senior partner at McKinsey, spoke eloquently about their experiences as Black female leaders in male-dominated sectors.

Moderator Zephaniah Chukwudum, Microsoft’s Director of Local & Devolved Government and Transport, described his interviewees as “two powerhouses” from the world of technology.

“Pamela Maynard is at the centre of AI transformation across the globe, not just at Microsoft but across customers worldwide. She’s been CEO of one of Microsoft’s biggest partners and features in Vogue magazine and the UK Power List,” he said.

“Jacky Wright is a global leader, ex-Microsoft Chief Digital Officer, senior partner at McKinsey, and a former Power List Number One,” he added.  

When asked to reflect on the BHM theme, Maynard said: “As I think about standing firm in power and pride, it resonates both professionally and personally. I didn’t see myself as somebody who had power, often turning up as the only person that looked like me in the room. As I’ve gone through my journey, I’ve realised that my difference is my power.”

For Jacky Wright, the theme suggested “mental willpower and mental fortitude, which evolves as you grow. There’s the power of community, and the power of differences.

“Everybody must recognise the individuality and the power you bring, wherever you are. I am who I am. I am different. I’m proud of who I am, my history, my background, and who I represent.”

Power of belief

Both leaders shared what it was like often being the only Black woman in the room and how they dealt with such situations.

“My mental model is simple,” said Wright. “I enter rooms with my elevator pitch. In the first two minutes I let clients know who I am and why I’m in the room. That is my coping mechanism.”

Maynard encouraged the audience to believe in their own abilities.

“No one else in the room knows as much about your subject, or your particular area, as you do. Use that as a strength,” she advised.

On the topic of allyship and sustaining progress, Maynard reminded the audience that being members of a community came with a responsibility to “maintain that connection”, as “it’s the power of the collective voice that we really need to drive forward.”

Jacky Wright agreed on the importance of communities and mutual support, saying: “The notion that we have communities where we can discuss, keep telling our stories, maintain cultural pride, and pull people up is really important.

“Never underestimate the power of what you can do, even if it’s calling someone and saying, ‘How was your day?’.”

As the celebrations closed, the message was clear: standing firm in power and pride is not just for October, but for every day. BHM 2025 at Microsoft UK had showcased the power of community, the significance of representation, and the impact of collective action.

Introduction

Good morning. It’s wonderful to be with you here in Frankfurt. In our interconnected global economy, it’s important to have opportunities like this to learn from the perspectives and experiences of others, whether we are academics, market participants, or practitioners of central banking.

The theme of my talk is the theory and practice of monetary policy implementation. Central banks differ in their objectives, strategies, and approaches to monetary policy implementation—all of which influence how they supply reserves, manage balance sheets, and control short-term interest rates.

But like Neapolitan and New York-style pizzas, central banks also share similarities. These were spotlighted in the ways they responded to the global financial crisis and the onset of the COVID-19 pandemic. Many central banks expanded their balance sheets through various quantitative easing programs funded in large part by increases in central bank reserves.

These experiences fundamentally changed the ways many central banks approach the provision of reserves while maintaining control of short-term interest rates. As a result, central banks have reviewed, and in some cases modified, their strategies for supplying reserves and controlling interest rates in ways that reflect the unique features of their jurisdictions. Although their approaches differ in specifics, they share common elements that reflect the fundamental factors that shape the supply and demand for reserves.¹

Today I will talk about the monetary policy implementation frameworks that central banks use to manage the supply and demand for reserves, emphasizing the common features and mechanisms of these approaches. I’ll also discuss in more detail the Federal Reserve’s ample reserves framework.

Before I go any further, I must give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System.

Framing the Frameworks

Monetary policy implementation frameworks are critically important to the conduct of monetary policy. They encapsulate the mechanisms and tools used to steer operational targets in line with the desired policy stance and provide liquidity to the financial sector.²

In supplying reserves to the banking system, central banks have multiple goals that frequently involve trade-offs.³ First and foremost, they target a level of the policy interest rate and aim to minimize the variability of the policy rate around that target. In addition, they have objectives related to supporting financial stability and the smooth functioning of financial markets. For example, central banks may see advantages or disadvantages to interbank lending in money markets, as well as costs and benefits related to central bank lending into markets.

The core of any operational framework is the central bank’s supply of reserves, which ranges from a low level, or “scarce,” to “ample” and “abundant.” The “price” of reserves is the spread between the market interest rate and the rate earned for holding reserves at the central bank. When reserves are scarce, the slope of the demand curve for reserves is steep, as illustrated in Figure 1. A small change in the quantity of reserves results in a meaningful change in the spread. When reserves are ample, the slope of the demand curve flattens but still slopes downward, so that small changes in the quantity of reserves have modest effects on the spread. And when reserves are abundant, the demand curve is essentially flat.

A central bank has two sets of tools it can use to supply reserves. These are illustrated in Figure 2. First, it chooses an ex ante aggregate level of reserves to supply to the banking system, labeled “X” in the figure. Second, it may make available a lending facility to the banking system that offers loans to financial institutions at an interest rate determined by the central bank. This is labeled “L” in the figure. If the ex ante supply of reserves is sufficiently low, the additional demand at rate L will be met by the lending facility. Note that both tools are a means to supply reserves: In the first, the supply is set in advance, while with the latter, it adjusts endogenously to market conditions.

Central banks deploy various combinations of tools depending on the institutional and market structures in their jurisdictions as well as preferences over the trade-offs involved in their use.⁴ These choices represent different points among the set of options for using the two tools. Despite differences in tactics, each of the approaches can achieve the goals of strong interest rate control and smooth market functioning. It is worth emphasizing that the two tools can be mutually reinforcing in achieving desired outcomes. For example, lending facilities limit upward movements in interest rates on days of high demand, thereby reducing the ex ante supply of reserves needed to control short-term rates.⁵

The European Central Bank, the Bank of England, and the Reserve Bank of Australia have chosen to operate with a relatively small amount of ex ante reserves supply and provide additional reserves as demanded at a rate near the policy target rate. Counterparties can then draw upon as much or as little as they choose based on their needs, subject to their ability to provide eligible collateral.⁶ In this way, even with a smaller ex ante supply of reserves, tight interest rate control is maintained amid significant movements in the demand for reserves. In the case of the Bank of England, its weekly Short-Term Repo facility sees regular sizable use. In October of this year, it averaged around £85 billion.⁷

Federal Reserve: Ample Reserves and Tools

Like that of other central banks, the Fed’s operational framework has evolved over time, reflecting its experience with large balance sheets since the global financial crisis.⁸ In January 2019, when the decline in the Fed’s asset holdings implied that the quantity of reserves would soon fall below an “abundant” level, the FOMC formally adopted an ample reserves strategy.⁹

The FOMC has defined this framework as one in which “control over the level of the federal funds rate and other short-term interest rates is exercised primarily through the setting of the Federal Reserve’s administered rates, and in which active management of the supply of reserves is not required.”¹⁰ Accordingly, the ex ante supply of reserves is chosen to be sufficiently large to meet the demand for reserves on most days.

One important tool the FOMC has established to ensure interest rate control is the overnight reverse repo facility (ON RRP), which, alongside the interest paid on reserve balances (IORB), helps set a floor for the federal funds rate. Through the ON RRP, eligible counterparties “lend” to the Federal Reserve at the rate set by the FOMC, currently at the bottom of the target range for the federal funds rate. Usage of the ON RRP adjusts automatically to market conditions, rising and falling with supply and demand, which is particularly important in a dynamic market.

The ON RRP has proven to be a very effective and flexible tool to support interest rate control to the downside. When Federal Reserve asset holdings push reserves above ample, the ON RRP relaxes the tight relationship between balance sheet size and reserves and acts as a safety valve in supporting smooth transmission of monetary policy to markets. As the size of the balance sheet falls, market rates rise above the rate offered at the ON RRP and, as a result, usage of the ON RRP declines to very low levels. This dynamic is seen in Figure 3, which shows average monthly usage of the ON RRP from 2016 through October of this year. The ON RRP was used extensively when it was economically sensible for the Fed’s counterparties to do so. By contrast, it has very limited usage when repo rates are well above the ON RRP rate, as is the case today.

In 2021, the Federal Reserve introduced the Standing Repo Facility (SRF), which nicely complements the ON RRP by providing interest rate control to the upside.¹¹ The SRF rate is set at the top of the FOMC’s target range for the federal funds rate. This combination of an ample supply of reserves and an SRF rate at the top of the target range reduces the day-to-day reliance on the facility except during periods of significant upward pressure on rates resulting from strong liquidity demand or market stress.

By ensuring that adequate liquidity will be available in a wide variety of circumstances, the SRF plays a critical role in capping temporary upward pressure on rates and assures markets of effective interest rate control and smooth market functioning. It is best thought of as a way of making sure that the overall market has adequate liquidity consistent with the FOMC’s desired level of interest rates. In that regard, it differs from other lending facilities—such as the discount window—that aim to provide individual banks with liquidity when the need arises.

The SRF has been effective as reserves have moved from abundant toward ample. Over the past two months, SRF usage has risen from essentially zero to having greater frequency and higher volume of take-up, especially on days of temporary repo market pressures, as shown in Figure 4. Like the ON RRP facility, the SRF’s effectiveness relies on market participants availing themselves of the SRF based on market conditions, free of worries about stigma or other impediments. I fully expect that the SRF will continue to be actively used in this way and contain upward pressures on money market rates.

Federal Reserve: The Way Forward

At the onset of the pandemic, the Fed, along with central banks around the world, responded quickly to restore market functioning,¹² causing reserves to rise well above ample, as they did in many jurisdictions.

In June of 2022, the Fed began the process of reducing the size of its balance sheet to transition toward an ample level of reserves.¹³ The FOMC said it intended to stop balance sheet runoff when it deemed reserves were somewhat above ample, and then allow reserves to decline further as other liabilities, such as currency, grow.

The process has worked according to plan. The Fed’s securities holdings have shrunk from a peak of about $8-1/2 trillion in 2022 to $6-1/4 trillion today. At its meeting last week, the FOMC decided it would conclude the reduction of its aggregate securities holdings on December 1.¹⁴ This decision was based on clear market-based signs that we had met the test of reserves being somewhat above ample.¹⁵ In particular, repo rates have increased relative to administered rates and have exhibited more volatility on certain days. Accordingly, we have been seeing more frequent use of the SRF. And the effective federal funds rate has increased somewhat relative to the IORB after years of that spread being at a stable level. These developments were expected as the supply of reserves closed in on ample.¹⁶

Looking forward, the next step in our balance sheet strategy will be to assess when the level of reserves has reached ample. It will then be time to begin the process of gradual purchases of assets that will maintain an ample level of reserves as the Fed’s other liabilities grow and underlying demand for reserves increases over time. Such reserve management purchases will represent the natural next stage of the implementation of the FOMC’s ample reserves strategy and in no way represent a change in the underlying stance of monetary policy.

Determining when we are at ample reserves is an inexact science. I am closely monitoring a variety of market indicators related to the fed funds market, repo market, and payments to help assess the state of reserve demand conditions. Based on recent sustained repo market pressures and other growing signs of reserves moving from abundant to ample, I expect that it will not be long before we reach ample reserves.

Conclusion

The FOMC’s implementation framework combines an ample supply of reserves with facilities to maintain strong interest rate control and flexibility regarding changes in the size of its balance sheet. This operational framework has proven to be highly effective—and it continues to work as designed.

Other central banks use different approaches that operate equally well. We all face common goals and issues. Like the delicious delicacies particular to individual countries, the similarities outweigh the differences.

Figures

Porsche Latin America, headquartered in Miami, celebrated a remarkable milestone in 2025: 25 years of connecting and supporting the independent network of Porsche importers and the passionate Porsche community across Latin America. To mark this significant anniversary, the company is launching an initiative that pays tribute to the region’s rich heritage and automotive excellence: Icons of Latin America.

“Icons of Latin America”: A Tribute to regional heritage

These notable occasions will be commemorated through bespoke Sonderwunsch projects, locally configured as heartfelt tributes to the beauty, identity and spirit of this diverse region. Each vehicle will be meticulously personalised by Sonderwunsch experts, drawing inspiration from the distinctive culture, flora, fauna and traditions of the various countries where Porsche Latin America is present. These automotive masterpieces will celebrate Latin American heritage for generations to come.

Inspired by Colombia’s Amazon rainforest and affectionately nicknamed “The Ocelot”, this one-of-a-kind 2025 911 GT3 Touring is finished in exclusive Paint to Sample Forest Green Metallic. As the inaugural Sonderwunsch project, it connects the country’s distinctiveness with Porsche passion in a truly exclusive and emotive manner.

This project also commemorates the fact that in 2025, Autoelite – Porsche’s official importer in Colombia – celebrates 30 years of representing the brand in the South American nation.

The exterior: Forest Green Metallic and Centenaire Silver

The Colombian Amazon is one of the most biodiverse regions on the planet. Its vast green canopy breathes life into the continent, providing shelter to countless species of plants, birds and mammals. It is both a national treasure and a global symbol of natural wonder.

The 911 GT3 Touring reflects this abundance through its Paint to Sample (2B4) Forest Green Metallic exterior. The deep hue, shimmering in various shades of green under sunlight, evokes the rainforest’s endless layers of foliage, shadow and light, interwoven in a rhythm of life. It is a colour that appears alive, shifting from mystery to brilliance depending on how it catches the eye.

Various accents on the vehicle’s exterior in Centenaire Silver offer a striking contrast. These are more than mere stylistic details: they echo the chrome trim of the earliest Porsche 911 models from the 1960s, linking this modern GT car even more closely to its brand heritage. From the rear light pagoda frame and the painted gurney flap on the rear spoiler, to the door handles, exterior mirror housings, rear intake grille surround and the “Porsche” logo on the rear – every Centenaire Silver detail evokes the purity of Porsche’s original design language. Even the 20/21-inch forged aluminium wheels are painted in Forest Green Metallic with fine Centenaire Silver lines on the face, balancing strength with elegance.

The interior: Cohiba Brown leather and Pepita fabric

Step inside, and the inspiration shifts from the rainforest as a whole to one of its most captivating inhabitants: the ocelot. This small wild cat, found throughout Colombia, is revered for its beauty. Its golden-brown coat, patterned with black rosettes, features an intricate design that elegantly provides camouflage. For centuries, the ocelot has fascinated people, appearing in folklore and art. Today, it remains a symbol of Colombia’s natural diversity and resilience.

The interior of this unique GT3 Touring translates the essence of the ocelot into Sonderwunsch craftsmanship. Most of the cabin is finished in Cohiba Brown leather, a rich shade echoing the animal’s coat, paired with Crema and Truffle Brown cross-stitching throughout. The Sports Seats combine Cohiba Brown with Pepita fabric seat centres in a palette of Truffle Brown, Black and Cream White — reminiscent of the ocelot’s spotted pattern and a nod to Porsche’s classic heritage.

The tribute is most clearly expressed in the headrests, which are embossed with the cunning and instantly recognisable silhouette of the ocelot. This design was directly inspired by Colombian traffic signs that alert drivers to wildlife crossings. On rural roads, where the rainforest meets the tarmac, these signs remind travellers of the delicate balance between humanity and nature. In this GT3 Touring, that same silhouette becomes a symbol of coexistence, respect, and admiration.

Sonderwunsch meets Latin American identity

Individualisation continues in every detail. An exclusive badge on both B-pillars, finished in Centenaire Silver, combines the Porsche Latin America logo with the script “Iconos de Latinoamérica” – a discreet yet powerful signature of the project’s identity. Illuminated door sill guards bear not only the GT3 logotype, but also inscriptions marking both anniversaries: “30 Años de Autoelite” on the driver’s side, and “25 Años de Porsche Latin America” on the passenger’s side – a subtle reminder of the project’s celebratory purpose. Most interior components, such as the Sport Chrono clock housing, upper and lower dashboard, air vent frames and slats, are all upholstered in fine Cohiba Brown leather, stitched in Truffle Brown.

The unique steering wheel, upholstered in Cohiba Brown leather, features a Truffle Brown 12 o’clock marker, reflecting precision and attention to detail. The Race-Tex headlining in Truffle Brown envelops the cabin in warmth, while the floor mats, seat belts, and interior panels have all been carefully tailored in matching tones.

Even the front luggage compartment is trimmed in Cohiba Brown and Truffle Brown leather, with Pepita fabric inserts echoing the seat design. Wherever the eye falls, there is a story of Sonderwunsch craftsmanship and Porsche passion.

About the Sonderwunsch Program

Porsche is reinterpreting the legendary Sonderwunsch (special wishes) programme of the late 1970s, enabling personalised one-offs – co-created by the customer and professionally realised by Porsche. The offering for new vehicles includes the installation of tailor-made special request options directly in the production run. A highlight that customers can access when ordering a car is Paint to Sample Plus: Porsche creates and develops an individual exterior colour based on the customer’s personal wishes.

Retrofitting of vehicles is also possible. Customers can completely redesign the interior and exterior of their car or create highly individualised one-offs with the support of Porsche’s own development and design team. For older vehicles, this programme always includes restoration, which can also be commissioned separately.