Federal Reserve Bank of Dallas President Lorie Logan
- Choices in 2025 boil down to resuming rate cuts ‘soon’ or holding rates steady for ‘quite some time.’
- Near-2% inflation with a labor market holding steady would not necessarily allow the Fed to cut rates soon.
- A rise in inflation would signal monetary policy has more to do.
- A cooling labor market or demand could be evidence that it’s time to cut rates.
- Trade policy and volatile financial conditions add to uncertainties.
- The Fed’s rate path should be guided by the need to keep inflation expectations well-anchored.
Logan is not giving much away here. “Cut or hold, that is the question” seems to be the summary. Other Fed officials have been overwhelmingly on the side of holding for some time ahead.
This article was written by Eamonn Sheridan at www.forexlive.com. Source