Created
: 2024.10.09
2024.10.09 22:29
Dallas Federal Reserve Bank President Lorie Logan argued on Wednesday that she had supported last month's substantial interest-rate cut but favoured smaller reductions going forward. She highlighted that there were "still real" upside risks to inflation and pointed to "meaningful uncertainties" surrounding the economic outlook.
'More gradual path' on rate cuts is likely appropriate from here.
Upside risks to inflation mean the Fed should not rush to reduce rates.
Lowering the policy rate gradually would allow time to judge how restrictive monetary policy may or may not be.
Normalizing policy gradually also allows fed to 'best balance' labour market risks.
Policy not 'preset,' Fed must remain nimble.
Supported the Fed's decision to begin normalizing policy by cutting the policy rate.
Less restrictive policy will help avoid cooling the labour market more than necessary.
Progress on inflation has been broad-based; the labour market has cooled, remains healthy.
Inflation, labour market 'within striking distance' of Fed's goals.
Recent trends in inflation for housing, other core services 'encouraging,' expect to come down over time.
US economy is 'strong and stable' but there are 'meaningful uncertainties' around outlook.
Spending, economic growth that's stronger than forecast poses upside risk to inflation.
Unwarranted further easing in financial conditions could also push demand out of balance with supply.
'Neutral' Fed funds rate is uncertain; structural economic changes mean it may be higher than pre-pandemic.
Remain attentive to inflation risks from supply chains, geopolitics, and port strikes.
As labor market has cooled, we face more risk it will cool beyond what is needed to return inflation to 2%.
Created
: 2024.10.09
Last updated
: 2024.10.09
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy