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Fed's Lorie Logan Advocates Shift to TGCR Rate

9/26/2025

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Summary

Story summary

Lorie Logan, president of the Federal Reserve Bank of Dallas, proposes replacing the federal funds rate with the tri-party general collateral rate (TGCR).
She says the fed funds market is outdated and fragile.
The TGCR is more active and reflects broader market conditions, making it a stronger target.
Market participants back the shift, noting the fed funds market has diminished.

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Story summary

Lorie Logan, president of the Federal Reserve Bank of Dallas, proposes replacing the federal funds rate with the tri-party general collateral rate (TGCR).
She says the fed funds market is outdated and fragile.
The TGCR is more active and reflects broader market conditions, making it a stronger target.
Market participants back the shift, noting the fed funds market has diminished.