The Federal Reserve Bank of Dallas gets a new leader
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Hoping Lorie Logan, here with Fed economist Roberto Coronado, will tell us how to make money moves. Photo courtesy of the Federal Reserve Bank of Dallas
The new president of the Federal Reserve Bank of Dallas has become the first woman to oversee the banking system's work in Texas, northern Louisiana and southern New Mexico.
Driving the news: Lorie Logan hosted a virtual event on Wednesday, eight days since her start date, to talk about her background and share her vision for the Dallas Fed.
Why it matters: The 1,300-employee Dallas Fed oversees the Federal Reserve Bank's 11th District, researches economic trends to influence national monetary policy, tracks banking conditions and ensures that there is a reliable supply of cash in the region.
- The Dallas Fed's research touches on construction and real estate, exports, agriculture, energy, immigration, manufacturing and the labor market.
State of play: Logan was previously an executive vice president at the Federal Reserve Bank of New York.
- She also represented the Federal Reserve at the Bank for International Settlements as a member of the markets committee.
- She said she sought the Dallas job because of the 11th District's influence on the American economy and the Dallas Fed's broad scope.
Between the lines: The previous Dallas Fed president, Robert Kaplan, stepped down last year amid questions over multiple multi-million dollar trades he made in 2020, around the time the Fed was trying to avert an economic downturn at the start of the pandemic.
- An investigation of Kaplan's trading activities is still ongoing. He insists he did nothing wrong. Since the scandal, the Fed has revamped its rules to ban policymakers and senior staff from buying individual securities and restrict active trading.
Yes, but: Logan didn't address the controversy surrounding her predecessor and instead focused on her experience and the Dallas Fed's mission during her introductory event.
What she's saying: The region is performing better than the rest of the country, but that economic recovery isn't even among all communities. Logan says she wants to meet people in the area to hear their experiences.
- "Not everyone is experiencing the economy in the same way, so an important part of the listening tour will be meeting with people and understanding those challenges, those barriers and how we can work together."
Meanwhile: The Federal Reserve is beginning its "great wind down" as it dials back on stimulus injected into the economy at the onset of the pandemic, Neil Irwin and Courtenay Brown of Axios Macro reported.
- It's all part of a two-pronged approach aimed at crushing inflation, but this new phase will be hard for financial markets to predict.