Federal Reserve Bank of Dallas President Lorie Logan said the U.S. central bank should consider ways to strengthen its liquidity infrastructure which, while robust, still can’t eliminate risks completely, Bloomberg News reported. “It remains incumbent on all players in the financial system — banks, other market participants, as well as central banks in our roles as both regulators and financial institutions — to appropriately manage liquidity risk,” Logan said Friday in prepared remarks for a speech at the European Central Bank Conference on Money Markets in Frankfurt. Logan, who spent the bulk of her career in the New York Fed’s markets group, outlined a broad range of ways in which the Fed could boost the availability of and access to liquidity in times of stress. She did not comment on monetary policy or the outlook for the economy. The Fed could help increase the ability of market participants to broker financial transactions, including by centrally clearing standing repurchase facility operations, Logan said, echoing comments she made earlier this year. Logan also said it’s important to consider how certain regulations impact intermediation costs, citing the Basel III leverage ratio as an example.
