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更多 >今天 2025-09-26
[Federal Reserve's Logan: The Fed Should Abandon the Federal Funds Rate and Adopt the Treasury-Collateralized Overnight Rate] Federal Reserve Bank of Dallas 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 tied to the more robust U.S. Treasury-collateralized lending market. Logan believes that the federal funds rate target is outdated, as the connection between the rarely used interbank market and the overnight money market is fragile and could break suddenly. She noted that updating the Fed's mechanism for implementing monetary policy would be part of an efficient and effective central banking system. Logan said, 'Some might argue that since everything is functioning well now, there is no need to act. But if the transmission mechanism between the federal funds rate and other money markets fails, we would need to quickly find an alternative target. I don’t think making critical decisions under time pressure is the best way to promote a strong economic and financial system.' She suggested that the Tri-Party General Collateral Rate (TGCR) could offer the most benefits. Logan pointed out that the TGCR covers over $1 trillion in transactions daily, making its changes effectively transmissible within the money market. In contrast, the federal funds market currently averages less than $100 billion in daily transactions.