Fed's Logan: Would find it difficult to cut rates again in December

Dallas Federal Reserve (Fed) President Lorie Logan said on Friday that she did not see a need to cut rates this week; explaining that the economic outlook did not call for it, per Reuters.

Key takeaways

"Would find it difficult to cut rates again in December, unless clear evidence of faster drop in inflation or rapid cooling in labor market."

"Risks to labor market mainly to the downside, but US central bank can address promptly if needed."

"Inflation is not convincingly headed to central bank's 2% target; Fed has an obligation to deliver."

"Labor market roughly balanced, cooling slowly."

"Inflation too high and likely to exceed 2% goal for too much longer."

"Alternative data provides visibility into state of economy."

"Breakeven payroll growth has likely fallen to 30,000 jobs per month."

"Layoffs, unemployment claims have stayed low, though mindful of recent layoff announcements."

"Consumer spending slightly exceeds longer-run trend; stock-market gains fuel wealthier households' demand."

Market reaction

These comments received a hawkish score of 6.8 from FXStreet Fedspeech Tracker. At the time of press, the US Dollar Index was up 0.2% on the day at 99.70.