Logan is out with an interesting speech as she suggests that the FOMC target should be shifted to the tri-party general collateral rate.
"The time has arrived for the Fed to modernize the interest rate target system," she said.
It's a technical move but she said the repo market is the center of money markets and it makes sense for that to be the target. She notes that the Fed funds market still works but is increasingly fragile.
She's started an interesting market plumbing discussion but didn't touch on the outlook for rates and her comments aren't market moving.
