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MNI: Fed Should Proceed Cautiously Toward Neutral Rate - Logan

Dallas Fed chief says there are hints that the neutral rate could be very close to where the fed funds rate is now.

MNI (WASHINGTON) - Federal Reserve Bank of Dallas President Lorie Logan on Wednesday said the central bank will most likely need more rate cuts to finish the journey to sustainably deliver both maximum employment and stable prices, but it’s difficult to be sure how many cuts may be needed and how soon they may need to happen.

The FOMC "has made a great deal of progress bringing down inflation and restoring balance to the economy," she said in prepared remarks noting her support for recent interest rates cuts. "But as the economy nears the harbor, it becomes more important to understand just how deep the water is. And with less room to maneuver, monetary policymakers need to be more prepared for winds and waves that could push us off course. Just like a ship captain, I think it behooves us to proceed cautiously at this point."

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MNI (WASHINGTON) - Federal Reserve Bank of Dallas President Lorie Logan on Wednesday said the central bank will most likely need more rate cuts to finish the journey to sustainably deliver both maximum employment and stable prices, but it’s difficult to be sure how many cuts may be needed and how soon they may need to happen.

The FOMC "has made a great deal of progress bringing down inflation and restoring balance to the economy," she said in prepared remarks noting her support for recent interest rates cuts. "But as the economy nears the harbor, it becomes more important to understand just how deep the water is. And with less room to maneuver, monetary policymakers need to be more prepared for winds and waves that could push us off course. Just like a ship captain, I think it behooves us to proceed cautiously at this point."

Keep reading...Show less