Lorie K Logan: Desk operations - the new normal

Remarks (via videoconference) by Ms Lorie K Logan, Executive Vice President in the Markets Group of the Federal Reserve Bank of New York, at the annual Primary Dealer Meeting, 8 April 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

As prepared for delivery

Welcome to the 2021 Annual Primary Dealer Meeting.

Primary dealers play an important role as counterparties in open market operations, providing a key link in the implementation of monetary policy-a core responsibility of the New York Fed as the Reserve Bank selected to operate in financial markets on behalf of the Federal Open Market Committee (FOMC). In addition, primary dealers serve as important participants in U.S. Treasury auctions. I'm glad that we're back together-even if only virtually-to participate in this annual forum. These meetings provide an opportunity to strengthen our relationship and communicate our expectations.

It was just over a year ago that the global economy and financial markets were upended by the COVID-19 pandemic, and the Federal Reserve undertook extraordinary actions to respond to the crisis. Today, I'd like to reflect on the operational approach of the New York Fed's Open Market Trading Desk (the Desk) during the past year, and some of the lessons I take away from this experience. Moreover, I'd like to highlight how our operations have transitioned since the onset of the pandemic, and some of the ways they will continue to evolve to ensure that we implement the FOMC's directives for open market operations in an effective and efficient manner.

Before proceeding, let me note that the views presented here are my own and do not necessarily reflect those of the New York Fed or the Federal Reserve System.