Fed’s Logan: There still are real upside risks to inflation

Source Fxstreet

Dallas Federal Reserve Bank President Lorie Logan argued on Wednesday that she had supported last month's substantial interest-rate cut but favoured smaller reductions going forward. She highlighted that there were "still real" upside risks to inflation and pointed to "meaningful uncertainties" surrounding the economic outlook.

Key Quotes

'More gradual path' on rate cuts is likely appropriate from here.
Upside risks to inflation mean the Fed should not rush to reduce rates.
Lowering the policy rate gradually would allow time to judge how restrictive monetary policy may or may not be.  
Normalizing policy gradually also allows fed to 'best balance' labour market risks.
Policy not 'preset,' Fed must remain nimble.
Supported the Fed's decision to begin normalizing policy by cutting the policy rate.
Less restrictive policy will help avoid cooling the labour market more than necessary.
Progress on inflation has been broad-based; the labour market has cooled, remains healthy. 
Inflation, labour market 'within striking distance' of Fed's goals.
Recent trends in inflation for housing, other core services 'encouraging,' expect to come down over time.
US economy is 'strong and stable' but there are 'meaningful uncertainties' around outlook.
Spending, economic growth that's stronger than forecast poses upside risk to inflation.
Unwarranted further easing in financial conditions could also push demand out of balance with supply.  
'Neutral' Fed funds rate is uncertain; structural economic changes mean it may be higher than pre-pandemic.
Remain attentive to inflation risks from supply chains, geopolitics, and port strikes.
As labor market has cooled, we face more risk it will cool beyond what is needed to return inflation to 2%.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple — BTC, ETH and XRP defend key support as rebound scenario stays in playBTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
Author  Mitrade
Jan 09, Fri
BTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
placeholder
Solana Future: From high-speed experiment to corporate treasury playbook for the next SOL cycleSolana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Author  Mitrade
Jan 12, Mon
Solana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
placeholder
Gold Price Forectast: XAU/USD rises above $4,600 on US rate cut expectations, Fed uncertainty Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
Author  FXStreet
Yesterday 01: 45
Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
placeholder
US Dollar Index steadies above 99.00 ahead of Retail Sales, PPI dataThe US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
Author  FXStreet
19 hours ago
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
placeholder
Bitcoin shows strong correlation with institutional demand following 7% uptickBitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
Author  FXStreet
3 hours ago
Bitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
goTop
quote