Thursday , 21 November 2024
Home Forex Fed’s Logan: Models show that Fed funds could be ‘very close’ to neutral
Forex

Fed’s Logan: Models show that Fed funds could be ‘very close’ to neutral

  • Fed will ‘most likely’ need more cuts but should ‘proceed cautiously’
  • If Fed cuts too far past neutral, inflation could re-acclerate
  • Difficult to know how many Fed rate cuts may be needed, and how soon they need to happen
  • Fed has made a great deal of progress in bringing inflation down
  • Fed not quite back to price stability yet
  • US economic activity is resilient
  • Labor market cooling gradually but not weakening materially
  • Sees upside risk to inflation, downside risk to employment, says financial conditions may pose biggest challenges for monetary policy
  • If bond yields continue to rise, the Fed may need less-restrictive policy

Logan last spoke in late October and wasn’t quite this hawkish. I think the Fed cuts in December but takes a pause after that and waits to see how things play out.

This article was written by Adam Button at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

USDJPY bounces off 100 bar MA on the 4-hour chart. Can the buyers keep the momentum?

The USD/JPY pair moved lower during the morning U.S. session but found...

More from Goolsbee: Feels like we are heading to 2% inflation

Feel like we're headed to 2% inflation.Neutral is a long way below...

USDCHF moves above converged 100 and 200 hour MAs and rockets higher

Earlier today, I posted:USDCHF: The USDCHF held resistance at the 100-hour moving...

Matt Gaetz withdraws name for Attorney General nomination

This article was written by Greg Michalowski at www.forexlive.com.