Dallas Fed Pres. Logan says:

  • Speed of transactions has highlighted the need to manage liquidity risks
  • Every bank should be ready to borrow from the Fed
  • Important that banks regularly test liquidity provision to make firms and system more resilient
  • If all banks regularly tested discount window access it would eliminate the stigma
  • Backstop should be available when ever banks needed, including nights, weekends and holidays
  • Enabling consumers and businesses to make instantaneous direct payment is potentially transformative

Feds' Logan does not speak on monetary policy or the economy, but the Fed is being direct in telling banks "make sure you have access to the discount window, because you never know when a slew of deposit withdrawals can happen".