Only two decades ago, the dealers who participated in primary Treasury auctions had to send representatives, in person, to the offices of the Federal Reserve Bank of New York to submit their bids on auction days. They dropped their paper bids into a box. The secondary market was a bit more advanced.
Heightened tensions in currency and capital markets could result in a more protracted and difficult global recovery. These, too, are developments that the FOMC must monitor carefully. Responsible monetary policy in the current environment requires attention not only to nearterm macroeconomic conditions, but also to corollary risks with long-term effects.