Fed’s Logan Says Money Market Could See Quarter-End Pressure (1)

Federal Reserve Bank of Dallas President Lorie Logan said money markets could face temporary pressures around quarter-end next month, though the US central bank still has room to continue reducing its balance sheet.

“We could see some temporary pressure around the tax date and quarter-end in September,” Logan said Monday in remarks prepared for a panel at a conference hosted by Mexico’s central bank.

If so, investors are likely to again tap the Fed’s overnight liquidity facilities as they did in June, and having those backstops in place “will allow us to continue gradually bringing reserves to a more efficient ...