Dallas Fed President Advocates TGCR for Interest Rate Benchmark

The Dallas Federal Reserve president recommends replacing the current interest rate target with the Treasury General Collateral Rate as a preferred measure.

Summary

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Terms & Concepts
  • Treasury General Collateral Rate (TGCR): A benchmark interest rate that reflects the cost of borrowing cash secured by U.S. Treasuries in the overnight repo market.
  • Interest Rate Target: A specific rate set by a central bank to guide monetary policy and influence economic activity.