Federal Reserve Logan: 2% inflation is not a necessary condition for the FOMC to cut interest rates
2025-02-06 22:29:00
Fed Logan said the options for 2025 boil down to resuming rate cuts "as soon as possible" or keeping rates on hold "for a considerable period of time." The Fed could cut rates if the U.S. job market deteriorates. A strong labor market could mean policy rates are near neutral. 2% inflation is not necessary for the FOMC to cut rates. Central banks must anchor inflation expectations. Changes in trade policy could continue to affect the economy.
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