Federal Reserve should slow asset runoff as reverse repo dwindles

FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S. REUTERS/Chris Wattie/File Photo/File Photo

NEW YORK: Federal Reserve Bank (Fed) of Dallas president Lorie Logan said the US central bank may need to slow down the pace at which it shrinks its portfolio of assets amid scarcer liquidity in financial markets.

While there’s still more than enough liquidity in the financial system, she said, individual banks could start to see constraints.