On Thursday, September 26, New York Fed President John Williams spoke at the 10th U.S. Treasury Market Conference about how the annual interagency collaboration has strengthened the understanding of Treasury market resiliency and that of adjacent markets. He also shared news about the New York Fed’s ongoing commitment to ensuring that the financial system continues to stand on a strong foundation of reference rates.
Key Takeaways from President Williams’s Speech at the 2024 U.S. Treasury Market Conference
Key Takeaways from President Williams’s Speech on the Economic Outlook and Monetary Policy
In remarks delivered at the Council on Foreign Relations, New York Fed President John C. Williams spoke about the economy, supply and demand balance, and bringing inflation back down to the Federal Open Market Committee’s (FOMC’s) 2 percent longer-run goal. He also discussed the progress made toward the Federal Reserve’s dual mandate goals of maximum employment and price stability, as well as the path ahead for monetary policy.
Tokenization: Another Giant Leap for Securities?
For most of modern history, stocks and bonds were pieces of paper. Sixty years ago, buying a financial security or taking it as collateral meant receiving a certificate about five days later. This worked well enough for decades, but by 1968 there was so much paper that settlement became unmanageable, and the ensuing crisis forced Wall Street to start using computers to keep track of paper securities. This transition took about four years and did not go smoothly. In the time it took for Wall Street to modernize, NASA’s Apollo program managed four moon landings.
Examining the Global Reach of the U.S. Dollar
On May 20 and 21, 2024, the Federal Reserve Board and the New York Fed jointly hosted the Third Conference on the International Roles of the U.S. Dollar. The conference brought together researchers, practitioners, and policymakers to understand how changes in the global economic and financial landscape may affect the central role of the dollar.
Monetary Policy Implementation in Practice Today
In recent articles, we introduced the Fed’s policy implementation framework, the role of the Fed’s balance sheet, and the Fed’s standing liquidity facilities. In this article, we use those key concepts to discuss recent developments in monetary policy implementation and how the Fed’s tools work in practice.
The Federal Reserve’s Standing Liquidity Facilities
An ample supply of reserves—consistent with the Fed’s “floor system”—and the smooth functioning of funding markets are critical to effectively implement monetary policy. Market disruptions occasionally require the rapid provision of additional liquidity. One way to do this is through open market operations conducted with primary dealers, in which the Fed increases the reserve supply either temporarily or more permanently.
The Role of the Federal Reserve’s Balance Sheet in Monetary Policy Implementation
The Fed’s balance sheet, like any financial balance sheet, is a record of the assets acquired—either through open market operations or backstop lending—and the liabilities issued to fund those assets. So, it can be thought of as a record of monetary policy and other actions the Fed took to achieve its “dual mandate” and other responsibilities. In this article, we discuss the evolution and role of the Fed’s balance sheet in monetary policy and its implementation.
The Federal Reserve and its Monetary Policy Implementation Framework
The Federal Reserve System is the central bank of the United States. Its key entities are the Board of Governors, which is an independent federal government agency, 12 regional Federal Reserve Banks, and the Federal Open Market Committee (FOMC). The FOMC includes members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four other regional Reserve Bank presidents who serve on a rotating basis. You might hear these entities more often referred to collectively as “the Fed,” for short.
Summer Reading on Monetary Policy Implementation
In the spirit of the summer season, the New York Fed’s Open Market Trading Desk (the Desk) thought it would contribute something to your summer reading list.
Conference on Cyber Risk to Financial Stability Explores Evolving Threats and New Approaches to Resilience
Earlier this year, the New York Fed and Columbia University’s School of International and Public Affairs (SIPA) hosted the fifth annual State-of-the-Field Conference on Cyber Risk to Financial Stability. Since 2017, this collaboration between the New York Fed and SIPA has brought together practitioners from across cyber security and finance to focus on three central questions: What are we learning about cyber risk to financial stability? What are we doing? And what’s next?