Fed’s Logan: rates should be held steady for a while
Dallas Federal Reserve President Lorie Logan said on Friday that the central bank should keep interest rates unchanged "for a time" to evaluate the level of monetary policy restrictiveness.
Speaking in Zurich, Logan stated that the Fed’s October interest-rate reduction was not justified given that inflation remains too high and the labor market is roughly balanced.
"In the absence of clear evidence that justifies further easing, holding rates steady for a time would allow the FOMC to better assess the degree of restriction from current policy," Logan said in her prepared remarks.
Logan reiterated that she would find it difficult to support another rate cut in December. She noted that elevated asset valuations and compressed credit spreads mean the policy rate must offset financial condition tailwinds.
Source: Investing.com
