Good morning, everyone, and welcome to the 10th Annual U.S. Treasury Market Conference. “Tenth” is a phrase that evokes a bit of surprise and a lot of pride. It’s surprising because it doesn’t seem like it was that long ago that the first of these meetings, which I had the honor of helping to organize, was held. But the passage of time is also something to be proud of because the conference has endured for so many years and I hope it will for many more to come.
The economy has changed a lot since we first met in 2015, but the need to discuss and study 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 effective implementation of monetary policy.
What happened in the Treasury markets 10 years ago next month and the subsequent release of the Interagency Task Force report on those events are what brought us together for the first annual U.S. Treasury Market Conference.1 This “flash crash” was a wake-up call, as we had never seen such a dramatic swing in Treasury prices in such a short period of time. The interagency task force report helped us understand how the structure of the Treasury market had changed and the important role that high-speed electronic trading firms were playing. It also underscored the importance of cooperation and communication among the five task force agencies, which has proven critical once again during the disruptions caused by the COVID-19 pandemic.
I am pleased to see that all members of the working group are represented here today. You will hear directly from many senior leaders, including your host, Chairman Williams, Vice Chairman Barr, and Secretary of State Yellen, who, of course, was the Fed Chair at the time of the first conference.
As I emphasized in my speech at this event in 2015, our nation’s entire financial system was built around the ability to quickly and efficiently turn Treasury securities into cash. I said then that “these markets must continue to function at a high level, and we all have a stake in ensuring that they do.” I remain fully committed to that goal.2
I wish you a productive and informative conference. I apologize that I cannot join you in person. The conversations you will have today are important, and I hope we will continue to have them. As evidenced by the decade of dedication to this event, I am confident that we will.
1. See the Interagency Working Group on Treasury Market Surveillance, Joint Staff Report: The U.S. Treasury Market as of October 15, 2014 (PDF) (Washington: Interagency Working Group, July 2015). Return to text
2. See Jerome H. Powell, “Opening Remarks” (speech delivered at the 2015 Treasury Markets and Debt Management Roundtable: Treasury Market Developments and Their Implications, New York, NY, November 20, 2015). Return to text
