The Federal Reserve is pushing central clearing, saying it’ll improve efficiency—but with market leverage, can they actually keep it under control?

CoinWorld News: Dallas Fed President Logan said that the Federal Open Market Committee conducting open market operations through a voluntary central clearing mechanism helps improve operational efficiency and effectiveness, and enhances U.S. financial market stability. He noted that such arrangements can improve the use of Federal Reserve tools, such as the standing repo facility, which is designed to provide liquidity to eligible financial institutions and is currently underutilized by the market. Logan emphasized that market leverage levels need to be carefully managed, and financial markets must maintain an appropriate balance between the benefits and risks of leverage, as well as between leverage and liquidity.