Hello, everyone, and welcome to the 10th Annual U.S. Treasury Market Conference. “Tenth annual” is a phrase that generates a bit of surprise, and much pride. It is surprising because it does not seem like the first of these gatherings, which I was honored to play a role in organizing, was all that long ago. But the time passed also is something we can take pride in because the conference has persevered for so many years, and I hope will for many more to come.
Much has changed in the economy since we first gathered in 2015—but the need for discussing and studying the U.S. Treasury market has not. As you all know, this market is the deepest and most liquid in the world. In addition to meeting the financing needs of the federal government, it plays a critical role in the efficient implementation of monetary policy.
What happened in Treasury markets 10 years ago next month and the subsequent publication of the Interagency Working Group report on those events are what brought us together for the first Annual U.S. Treasury Market Conference.1 That “flash crash” was a wakeup call because we had never seen such a large swing in Treasury prices in such a short period of time. The Interagency Working Group report helped us understand how much the structure of the Treasury market had changed and how large a role high-speed, electronic trading firms were playing in it. It also underscored the value of cooperation and communication between the five agencies in the working group, something that proved again to be vital during the disruptions caused by the COVID-19 pandemic.
I am pleased to see that all working group members are represented here today. You will be hearing directly from many senior leaders, including your host, President Williams; Vice Chair Barr; and Secretary Yellen, who, of course, was Fed chair at the time of the first conference.
As I noted when I spoke at this event in 2015, our nation’s entire financial framework has been built around the ability to quickly and efficiently transform Treasury securities into cash liquidity. I said then that “these markets need to keep functioning at a high level, and we all have a stake in making sure that they do.” I remain wholly dedicated to that goal.2
I wish you a productive and educational conference. I am sorry I am unable to join you in person. The conversations you will have today are important, and I hope we will keep having them. As evidenced by the decade of dedication to this event, I am sure we will.
1. See Interagency Working Group on Treasury Market Surveillance, Joint Staff Report: The U.S. Treasury Market on October 15, 2014 (PDF) (Washington: Interagency Working Group, July 2015). Return to text
2. See Jerome H. Powell, “Opening Remarks” (speech at the 2015 Roundtable on Treasury Markets and Debt Management: Evolution of Treasury Market and Its Implications, New York, NY, November 20, 2015). Return to text