Federal Reserve's Logan expects banks to use SRF in September to alleviate liquidity pressure

ChainCatcher news, according to Jinshi reports, Dallas Fed President Logan stated that the Federal Reserve still has room to reduce excess reserves and expects banks to use their Standing Repo Facility (SRF) in September to alleviate liquidity pressures. He mentioned that there might be brief pressures around the September tax date and quarter-end, noting that the market used the SRF at the end of June, and it is expected that this tool will be used in September if necessary. This tool is designed to prevent liquidity shortages, allowing eligible institutions to quickly convert U.S. Treasuries into cash.