BofA Says Any Fed Funds Rate Transition Would Likely Take a Year

Shifting the Federal Reserve’s policy target away from the federal funds rate to a repo-based benchmark would likely take a year to implement, according to Bank of America Corp.

• “We expect the Fed to move from fed funds to a repo target but the process may be slow,” wrote Bank of America’s Mark Cabana and Katie Craig in a Friday note, adding that the change “is overdue”
  • Dallas Federal Reserve President Lorie Logan, who said Thursday the central bank should consider replacing the fed funds rate, has a “big hill to climb vs Fed institutional inertia,” the ...