Logan: The Federal Reserve should abandon the federal funds rate and switch to using the overnight rate secured by Treasury bonds

ChainCatcher news, according to Jinshi reports, Dallas Fed 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 linked to the U.S. Treasury collateral loan market. She believes that the federal funds rate target is outdated, and the connection between the interbank market and the overnight money market is weak and could suddenly break. Logan pointed out that the Tri-Party General Collateral Rate (TGCR) could provide the most benefits, as TGCR covers over $1 trillion in transactions daily, while the federal funds market's trading volume currently averages less than $100 billion.