Logan: The Federal Reserve should abandon the federal funds rate and switch to the Treasury-collateralized overnight rate
According to Golden Ten Data, Dallas Federal Reserve President Logan stated that the Federal Reserve should abandon using the federal funds rate as the benchmark for implementing monetary policy, and instead consider an overnight rate linked to the U.S. Treasury collateralized lending market. She believes that the federal funds rate target is outdated, and the connection between the interbank market and the overnight money market is fragile and could break suddenly. Logan pointed out that the Tri-Party General Collateral Rate (TGCR) could bring the most benefits, as TGCR covers over $1 trillion in transactions daily, while the federal funds market currently averages less than $100 billion in trading volume.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
JPMorgan Reveals the Critical Price Level for Bitcoin Miners
Altman: Safety comes first, no IPO timetable, postponing the release of GPT-6.1 Astra out of extreme caution
OpenAI CEO Altman stated that the IPO may only be considered after the company gains a clearer understanding of how to safely manage the "next-level AI." The delay in launching GPT-6.1 Astra is because the model did not meet some of the company’s evaluation criteria for safety; this decision was made "out of an abundance of caution" rather than due to any major incident. He also noted that Nvidia’s safety systems for AI are not a "complete solution;" AI is more of a scientific problem than an engineering one.
SOS says private placement closes under securities purchase agreement
Talen names Terry Nutt CEO effective Jan. 1, 2027; Mac McFarland retires at year-end
Crypto prices
More
