"Analyzing the Impact of Market Monitoring on Monetary Policy Execution"
Dallas Fed President Lorie K. Logan, in her speech at the annual meetings of the International Banking, Economics and Finance Association and the American Economic Association, discussed the current state of the economy, the progress made in reducing inflation, and the ongoing rebalancing of the labor market. She highlighted the risks of premature easing of financial conditions and the importance of maintaining restrictive financial conditions to ensure price stability. Logan also addressed the Fed's balance sheet reduction and the smooth functioning of money markets, emphasizing the need for liquidity redistribution and considering the pace of asset runoff. She concluded by acknowledging the SEC's adoption of broader central clearing for Treasury market transactions, suggesting that the Fed consider the benefits of central clearing for its own operations.