Dallas Fed President Says Central Bank Should Consider Replacing Its Benchmark Rate

Lorie Logan, president of the Federal Reserve Bank of Dallas, has proposed replacing the central bank’s benchmark federal funds rate — the primary tool the central bank has used to steer the nation’s economy since the 1980s — with a much more widely used market bellwether.

In a speech delivered Thursday and in an accompanying essay, Logan unexpectedly rekindled a debate that market participants say is long overdue.