Federal Reserve’s Logan Says December Rate Cut Unlikely Amid Elevated Repo Rates
Logan signaled that with inflation poised to remain above target and the labor market balanced, rate cuts this week or in December are unwarranted without stronger supporting evidence.
Summary
Federal Reserve official Logan reiterated that interest rates should not be reduced this week or in December, citing a balanced labor market and inflation expected to stay above the long-term 2% target. She stressed that clear and compelling evidence of faster inflation declines or labor market cooling is required before supporting further monetary easing. Her remarks reinforce the Fed’s cautious stance amid persistent inflationary pressures.
Terms & Concepts
- Rate Cut: A reduction in the benchmark interest rate set by a central bank, aimed at stimulating economic activity.
- Asset Purchases: Central bank operations involving buying financial assets, such as bonds, to inject liquidity into the economy.