Dallas Fed President Logan says current data doesn’t justify pausing rate hikes yet
Dallas Federal Reserve President Lorie Logan said Thursday that the economic data points so far don’t justify skipping a rate increase at the central bank’s next meeting in June.
While noting some progress in bringing down inflation and cooling the labor market, Logan said the Fed still has work to do in achieving its goal for price stability. Logan is a voting member this year of the rate-setting Federal Open Market Committee.
After raising the target range for the federal funds rate at each of the last 10 FOMC meetings, we have made some progress,” she said in prepared remarks for a speech to bankers in San Antonio. “The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren’t there yet.”
Market pricing indicates an expectation that the Fed will hold the line at its June 13-14 meeting, pausing a rate-hiking cycle at began in March 22. The CME Group’s FedWatch gauge, which gauges prices in the fed funds futures market, puts a 26% probability for a 0.25 percentage point hike at the meeting, though the odds have been rising in recent days.
Like other Fed officials who have spoken recently, Logan emphasized that the decision ultimately will be based on inflation and employment data still to come before the next meeting.
This report’s information was first seen on CNBC; to read more, click this link.