🔥 Rates Need to Stay High — Logan Isn’t Convinced Inflation Is Done
I’ve been following Fed updates closely, and something stood out yesterday: Dallas Fed President Lorie Logan is still holding the line. Even with inflation slowing down, she says it's way too early to start cutting interest rates.
Her message? Until the data consistently proves inflation is under control, the Fed should stay tight. Honestly, I agree with her cautious stance — we’ve all seen fakeouts before.
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📉 Inflation’s Cooling — But Don’t Get Too Excited Yet
The July 15 CPI report showed another month of softer inflation. That’s five months in a row now. Sounds bullish, right?
But Logan’s not buying into short-term trends.
She reminded everyone: “We’ve been here before — good data one month, inflation spikes the next.”
That hit hard — and it’s true. Patience is key.
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🧮 Trump’s Tariffs Make It Even Trickier
Just as things were calming down, Trump’s new tariff plans came in like a storm. If businesses pass those extra costs onto consumers, we could see prices creeping back up again. That’s exactly the kind of situation the Fed wants to avoid.
This has made Fed members even more divided:
🔸 Some say we’ll see 2 rate cuts this year
🔸 Others think we might get none at all
It’s all up in the air, and macro uncertainty is growing.
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⚖️ Fed Pressure Is Real — and It’s Political Now
One thing I didn’t expect was how open Logan was about political pressure. She straight-up said that too much interference could damage the Fed’s credibility.
Trump’s been vocal about wanting rate cuts — especially with elections looming — but Logan pushed back:
“If we cut too fast, inflation might come roaring back.”
That’s a warning crypto traders should pay attention to.
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🧠 What I’m Watching Next
This split inside the Fed — plus Trump’s tariff drama — is setting up a volatile few months. As someone active in the markets, I’m not making any big plays based on hopes of a pivot.
I’m waiting for confirmation. If we do see weaker jobs data + continued CPI drops, I might change my strategy. But for now, I’m keeping things defensive and watching macro moves closely.
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🔍 Quick Recap (My POV):
✅ Logan: Fed policy should stay tight — inflation isn’t done
✅ Trump tariffs could bring inflation back, making cuts riskier
✅ July CPI cooled, but Logan’s not convinced yet
✅ Fed is split on what’s next — 1–2 cuts still possible
✅ Political pressure is building — but credibility matters more
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