MNI BRIEF: Fed's Logan Sees Little Case For Dec. Rate Cut

The Federal Reserve should be leery of cutting interest rates again with inflation still elevated and the job market largely stable, Dallas Fed President Lorie Logan said Friday. 

"I did not see a need to cut rates at the October meeting. And with two rate cuts now in place, I’d find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labor market will cool more rapidly," she said in a speech. The Dallas Fed president is not a FOMC voter this year. 

"While inflation has come down significantly from the post-pandemic peak, it’s still not convincingly headed all the way back to 2%. I remain concerned about the trajectory of underlying inflation, even after accounting for temporary factors that affect prices in the near term." (See MNI INTERVIEW: High Bar For More Cuts As Neutral Nears-Kaplan)