In my remarks this morning, I will share my views on events in U.S. financial markets over the past several months. Specifically, I will describe what I believe were contributing factors in the breakdown of the price discovery mechanism in certain markets, and I will assess the future prospects for these markets.
While I will draw some preliminary conclusions about recent market events, my views and those of other policymakers will likely continue to evolve as we develop a more informed perspective and benefit from further analysis. 1 Price discovery When markets are functioning properly, one of the key roles that they perform is what economists refer to as "price discovery."