Federal Reserve Bank of Dallas president Lorie Logan. — Bloomberg
WASHINGTON: Federal Reserve (Fed) Bank of Dallas president Lorie Logan says that while policymakers will likely need to hold interest rates steady for a bit longer to fully cool inflation, it is also possible they may need to pivot to cutting if inflation and labour markets soften.
“All this adds up, for me, to a base case in which monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target – and in this base case, we can sustain maximum employment even with modestly restrictive policy,” Logan said Tuesday.
