Dallas Federal Reserve President Lorie Logan stated Friday that while the Federal Reserve is prepared to lower interest rates if necessary, current conditions do not warrant such action.
In a speech before the 159th Assembly for Bank Directors at Southern Methodist University, Logan noted that the recent rise in longer-term interest rates partly reflects expectations of more substantial economic growth and the anticipation that the Fed's policy rate will remain elevated for an extended period.
Addressing the banking sector, Logan pointed to lessons learned from Silicon Valley Bank's (SVB) failure, particularly how quickly a bank run can unfold. She stressed the importance of liquidity and suggested that banks use the Fed's discount window as a key liquidity source.
