Fed's Logan: Too early to think about cutting rates
|On Friday, Dallas Federal Reserve President Lorie Logan remarked that there are "uncertainties" regarding whether monetary policy is adequately restrictive to lower inflation to the Fed's target, emphasizing that it is "premature" to consider interest rate cuts at this stage.
Key Takeaways
We've made substantial progress on inflation, with labor market and economy strong.
Not a soft landing yet.
Q1 inflation data disappointing.
There are important upside risks to inflation.
There are uncertainties if policy is sufficiently restrictive.
Too early to think about cutting rates.
We need to remain flexible on policy.
The neutral interest rate level may have risen.
Events of March 2023 have really impacted how we need to think about liquidity risk.
Critically important that banks have a broad set of funding arrangements; one of them has to be the Fed's discount window.
We want to see every bank sign up for discount window.
We want to see every bank testing the discount window on a regular basis.
Safe, healthy banks use the discount window all the time; that's a good thing.
Once banks are signed up, discount window is an easy system to use.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.