Senior Fed official: There may be no need to cut interest rates further, even if inflation continues to cool "
Internet reports that Logan, chairman of the 2026 FOMC voting committee and Dallas Fed, said that interest rates may be close to neutral levels, and even if inflation continues to cool, the need for further interest rate cuts may be avoided. "What if inflation approaches 2% in the next few months?" Logan delivered a prepared speech Thursday at an event in Mexico City. "While this is good news, in my opinion it will not necessarily cause the Federal Open Market Committee to cut interest rates anytime soon," she said. Logan said inflation fell back towards the Fed's target in an environment of strong demand and a stable job market, suggesting that the Fed's benchmark policy rate may be close to neutral. She added that if this continues, there will not be "much" room for interest rates in the short term. Neutral interest rates refer to the level at which central bank policy settings neither promote nor hinder the economy. (Jin Shi)
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