Select Language

Fed's Logan: Monetary policy in a good place

Breaking news

Fed's Logan: Monetary policy in a good place

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.05.30 09:46
Fed's Logan: Monetary policy in a good place

update 2025.05.30 09:46

Federal Reserve Bank of Dallas President Lorie Logan gave opening remarks and participated in a moderated conversation before the Greater Waco Member Appreciation event.

Key quotes

Risks to employment and inflation goals 'roughly balanced.'
For now, monetary policy is in a good place.
Could take 'quite some time' to see shift in balance of risks.
If balance shifts, the Fed is well prepared to respond.
Labor market strong, inflation trending gradually to 2%.
Stimulative fiscal policy could boost demand.

Market reaction 

The US Dollar Index (DXY) is trading 0.05% lower on the day at 99.30, as of writing.

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.


Date

Created

 : 2025.05.30

Update

Last updated

 : 2025.05.30

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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.

Was this article helpful?

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].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CHF consolidates losses below 0.8130 in risk-on markets with Fed's Powell in the spotlight

Fed Chair Powell is expected to speak to Congress later today and give more clues on the bank's next steps.The Swiss Franc has retraced most of the last two weeks' losses, and the USD/CHF has returned to levels right above 0.8100, with the Dollar weighed by the risk-on mood after the announcement of
New
update2025.06.24 17:16

German IFO Business Climate Index rises further to 88.4 in June vs. 88.3 expected

The headline German IFO Business Climate Index advanced to 88.4 in June from 87.5 in May. The data came in a tad higher than the market forecast of 88.3.
New
update2025.06.24 17:02

EUR/USD jumps near YTD highs after Trump announces a complete Iran-Israel ceasefire

The EUR/USD pair is rallying on Tuesday, following a significant rebound on Monday after US President Donald Trump announced a "complete and total ceasefire" between Israel and Iran.
New
update2025.06.24 17:00

Canada CPI set to remain below target in May despite inflation uncertainty from US tariffs

This Tuesday, Statistics Canada will release the Consumer Price Index (CPI) for May. This will get the market's attention because it will provide new information about inflation trends that the Bank of Canada (BoC) uses to make decisions about interest rates.
New
update2025.06.24 17:00

Israeli military identifies missiles launched from Iran towards Israel

Israeli military said on Tuesday that it identified missiles launched from Iran toward Israel after the ceasefire took effect.
New
update2025.06.24 16:52

Silver Price Forecast: XAG/USD tests $36.00 support after retreating from nine-day EMA

Silver price (XAG/USD) retraces its recent gains registered in the previous session, trading around $36.00 per troy ounce during the early European hours on Tuesday.
New
update2025.06.24 16:38

Forex Today: Oil plunges on Iran-Israel ceasefire, USD weakens ahead of Powell

Here is what you need to know on Tuesday, June 24:
New
update2025.06.24 16:31

NZD/USD returns above 0.6000 as the Iran-Israel truce boosts appetite for risk

The risk-sensitive New Zealand Dollar is rallying more than 1% on Tuesday and about 2.5% from Monday's lows as the announcement of a ceasefire in the Middle East has triggered a relief rally that sent the US Dollar tumbling.US President Donald Trump thanked Tehran for the contained response to this
New
update2025.06.24 16:29

Pound Sterling surges against US Dollar as Greenback suffers from Israel-Iran ceasefire

The Pound Sterling (GBP) extends its Monday's upside move to near 1.3600 against the US Dollar (USD) during European trading hours on Tuesday.
New
update2025.06.24 16:16

US Dollar Index slides to near 98.00 on Israel-Iran ceasefire, Fed's dovish comments

The US Dollar (USD) underperforms its major peers during European trading hours on Tuesday as its safe-haven demand has diminished significantly, following the announcement of a ceasefire between Israel and Iran.
New
update2025.06.24 16:12

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel