Fed’s Potter - Transmission of Mon Pol relies on competition within & integration across money markets

Federal Reserve Bank of New York markets chief Simon Potter said the Fed’s framework remains highly effective, has proved quite resilient and added that the transmission of the monetary policy relies on competition within and integration across money markets. 

Key quotes

Recent evidence on dispersion in overnight and term rates suggests that we should continue to monitor the transmission of the FOMC’s policy stance into money market rates carefully.
The FOMC’s policy target is the federal funds rate, which is a measure of what banks pay to take out unsecured overnight loans from other banks and from government-sponsored entities.

However, the Federal Reserve does not transact in the federal funds market, and therefore cannot directly impact the federal funds rate. Instead, it relies on a predictable relationship between rates in the markets in which it does operate, and rates on federal funds borrowings