Balanced risks, no rush for rate cuts: Fed's Logan

No rush for rate cuts: Dallas Federal Reserve Bank President Lorie Logan conveyed a cautious stance on interest rate cuts, stressing the need for more data to confirm sustained progress in inflation reduction. 

Speaking at the Tarrant Transportation Summit in Hurst, Texas, Logan expressed satisfaction with the current balance of risks in the economy but underscored the importance of continued data analysis.

She supported the Fed's recent decision to maintain the policy rate within the 5.25 per cent-5.5 per cent range, aligning with Fed Chair Jerome Powell's indication of potential rate cuts in the future.

Logan stressed that she sees no immediate need for further adjustments, citing the ongoing tightness in the labour market and the necessity to assess the durability of inflation progress.

Logan's perspective echoed sentiments expressed by her colleagues, including Richmond Fed President Thomas Barkin and Atlanta Fed President Raphael Bostic, who stressed upon the importance of further addressing inflation while maintaining economic strength.

While inflation has reached the Fed's 2 per cent target, Logan highlighted the need to remain vigilant against potential risks such as geopolitical tensions or supply chain disruptions that could hinder progress. 

She noted a generally positive economic outlook with sustained inflation near target levels, robust growth, and a strong labour market.

Regarding the Fed's balance sheet reduction, Logan mentioned that the process is proceeding smoothly but refrained from providing specific details or projections about its future trajectory.

(With Reuters Inputs)