Central Banks
Logan Says Fed Should Slow Asset Runoff as Reverse Repo Dwindles
- Fed shouldn’t rule out chance of another rate hike, Logan says
- Dallas chief warns easing financial conditions may fuel demand
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Federal Reserve Bank of Dallas President Lorie Logan said the US central bank may need to slow down the pace at which it shrinks its portfolio of assets amid scarcer liquidity in financial markets.
While there’s still more than enough liquidity in the financial system, she said, individual banks could start to see constraints. Speaking at an event in San Antonio on Saturday, Logan said it’s now “appropriate” to begin discussing the parameters around a Fed decision to slow the pace of its balance-sheet runoff.