Dallas Fed President Logan stated that the Federal Open Market Committee's voluntary participation in the central clearing mechanism for conducting open market operations can help improve operational efficiency and effectiveness, and enhance the stability of the US financial market. Logan pointed out that relevant arrangements can improve the use of Federal Reserve tools, such as the Standing Repurchase Facility. This tool aims to provide liquidity to eligible financial institutions, and its current market usage rate is relatively low. Logan stated that market leverage levels need to be carefully managed, and financial markets need to maintain an appropriate balance between the returns and risks brought by leverage, as well as between leverage and liquidity.
