NEW YORK, Oct 14 (Reuters) - The popularity of a Federal Reserve facility that allows financial firms to park cash with the central bank overnight is not concerning and usage should decline as rates on other investments start to rise, a senior New York Fed official said on Thursday.
"Over time, if rates on other overnight investments start to rise relative to the overnight (reverse repo facility) ... I would expect the overnight RRP usage to come down," Logan said during a virtual discussion.
Usage of the facility surged to record highs in recent months as firms struggling to invest their excess cash stash more than $1 trillion daily with the Fed. (Reporting by Jonnelle Marte Editing by Chris Reese)
