During her address at “The SNB and its Watchers 2025” Conference in Zurich, Dallas Federal Reserve President Lorie Logan articulated that the prevailing elevated asset valuations and compressed credit spreads necessitate the policy rate to neutralize the supportive tailwinds from financial conditions. Logan indicated that a subsequent rate cut in December would be challenging, explicitly stating her view that the October rate cut was not justified. She further noted that inflation levels remain excessive while the labor market is approximately in equilibrium. Logan concluded by advocating for a period of stable interest rates, which would enable the Federal Reserve to adequately assess the restrictiveness of its current monetary stance
Fed’s Logan Signals Hesitancy on Another December Rate Cut
