Dallas Fed’s Logan Says Next Move Could Be Hike or Cut

Overview

• Dallas Fed President Lorie Logan explained why she dissented from this week’s Fed statement that hinted at a rate cut.
• She said the economic outlook is highly uncertain and inflation risks remain a concern for policymakers.
• Logan stated that the Federal Reserve’s next policy step could plausibly be an increase or a reduction in interest rates.
• She backed keeping the federal funds rate target at 3.50% to 3.75% in the latest decision.
• She urged the Fed to avoid forward guidance that suggests cuts, noting three regional presidents opposed the wording because such signals can sway markets.