Fed's Logan says there's a path to reduce demand to hold reserves

NEW YORK, Feb 20 (Reuters) - Federal Reserve Bank of Dallas President Lorie Logan said on Friday that it’s possible rule changes and technological changes in payments could reduce demand for liquidity in the financial system.

“I don’t have strong views about the direction of liquidity regulations at the moment,” Logan said at an event at Columbia University. But she added that as part of a review of this landscape, “I’ve worried over time that we’ve trapped a lot of highly liquid assets” under a lot of rules, and “I do think we need to be looking” at these rules “thoroughly.”