The report revealed that the two main endogenous factors are cooperation and standardization, which we have already discussed. The three key exogenous factors are, not surprisingly, technological developments, regulation, which we have also dealt with, and user behavior and user demand.
The FOMC recognized that less accommodative conditions in some financial markets posed a threat to the strength of future economic growth. Nonetheless, our primary concern remained the upside risks to inflation. Shortly after the August FOMC meeting, however, financial market conditions deteriorated considerably further, following events that shook investor confidence, particularly in complex structured credit products.