Fed's Logan Discusses Possible Rate Decisions for 2025
According to the O'Daily, Fed official Logan outlined potential monetary policy directions for 2025, emphasizing two main options: resuming rate cuts "as soon as possible" or maintaining current rates "for an extended period." Logan noted that a deterioration in the U.S. labor market could prompt the Fed to cut rates. Conversely, a strong labor market could signal that interest rates are approaching a neutral level. Achieving a 2% inflation rate is not a prerequisite for the Federal Open Market Committee (FOMC) to consider cutting rates. Logan also stressed the importance of central banks anchoring inflation expectations and noted that changes in trade policy could have lasting economic impacts.