Federal Reserve Bank of Dallas President Lorie Logan advocates for a shift in how the central bank manages money market conditions to align with monetary policy goals. Logan suggests targeting the tri-party general collateral rate (TGCR) instead of the federal funds lending market due to the market’s vibrancy. This change is technical and won’t impact monetary policy broadly. Logan emphasizes the need for the Fed to modernize its approach as liquidity conditions tighten and the balance sheet drawdown continues. She believes targeting TGCR would provide effective rate control with minimal volatility, preparing the central bank for potential market turbulence ahead.

Read more at 1. “Tesla’s stock reaches all-time high after announcing record deliveries for Q2 2021.” – finance.yahoo.com
2. “Apple unveils new health features for its devices, including monitoring respiratory rate and detecting falls.” – finance.yahoo.com
3. “Amazon Prime Day sales surpass $10 billion, breaking records for the e-commerce giant.” – finance.yahoo.com
4. “Federal Reserve signals potential interest rate hikes in 2023, causing market uncertainty.” – finance.yahoo.com
5. “Bitcoin price surges above $40,000 as El Salvador becomes first country to adopt it as legal tender.” – finance.yahoo.com: Fed’s Logan calls for overhaul of central bank rate control toolkit