Dallas Fed President: "Additional rate cuts may not be necessary"

A cautious view has emerged within the U.S. Federal Reserve (Fed) on the need for further interest-rate cuts. Lorie Logan, president of the Federal Reserve Bank of Dallas, said additional easing measures may be unnecessary if inflation and the labor market maintain their current trajectory.

According to Walter Bloomberg, a breaking-news account, on the 10th (local time), Logan said in recent remarks that "if inflation is coming down and the labor market remains stable, additional rate cuts may not be necessary."

She added, however, that "if the labor market weakens, rate cuts may be needed," suggesting that the policy response could change depending on shifts in upcoming economic indicators.

She went on to assess that "current economic activity is showing a recovery, and downside risks to the labor market have diminished compared with before."

On the inflation outlook, Logan said it "remains at a high level, but I’m somewhat optimistic that it could move close to the 2% target sometime this year."

Her comments underscore that differences of opinion persist within the Fed over the pace and need for rate cuts, and that forthcoming employment and inflation data are expected to be key variables shaping the direction of monetary policy.