Overview
- Lorie Logan called for the Fed to stop using the federal funds rate as its operational target and instead manage the tri‑party general collateral rate.
- She said the TGCR market is active enough for effective control with existing tools and does not require pinpoint precision.
- Logan argued links between the fed funds rate and broader conditions have become fragile as reserves swelled after the crisis and pandemic.
- She urged any transition to be announced well in advance and executed when markets are functioning smoothly.
- Reuters noted the target range is 4.00%–4.25% after a quarter‑point cut, with month‑end liquidity pressures and balance‑sheet runoff posing near‑term operational tests.