Insights from Powell, Yellen, and Gensler on Treasury Market Volatility at the 2024 Conference

Key Takeaways from the 2024 U.S. Treasury Market Conference

Federal Reserve Chair Jerome Powell opened the 2024 U.S. Treasury Market Conference on Thursday with reflections on the October 2014 volatility in Treasury markets. This event prompted the first annual gathering of government officials and private-sector stakeholders.

The 2014 episode exhibited rapid moves in Treasury yields without an apparent cause. “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,” Powell stated in a prerecorded video address.

“The Interagency Working Group report helped us understand the structural changes in the Treasury market and the significant role of high-speed electronic trading firms. It also emphasized the necessity of collaboration among the five working group agencies, vital during the disruptions caused by the Covid-19 pandemic,” he added.

• The five agencies include:
• The Department of the Treasury
• The Board of Governors of the Federal Reserve System
• The Securities and Exchange Commission
• The Commodity Futures Trading Commission
• The New York Fed

Powell's commitment to ensuring high-functioning Treasury markets remains steadfast. “Markets need to function effectively, and I am dedicated to that goal,” he affirmed.