Fed’s Logan Is Skeptical That More Rate Cuts Are Necessary
- Higher neutral level means that officials could hold rates
- Flags risks of new government policies for economy, inflation
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Federal Reserve Bank of Dallas President Lorie Logan said interest rates may already be near a neutral level, potentially obviating the need for further cuts even if inflation continues to cool.
“What if inflation comes in close to 2% in coming months?” Logan asked in prepared remarks for a Thursday event in Mexico City. “While that would be good news, it wouldn’t necessarily allow the FOMC to cut rates soon, in my view,” she said, referring to the Federal Open Market Committee.