Fed’s Logan urges patience on rate cuts

Dallas Federal Reserve President Lorie Logan said the US central bank can afford to be patient in adjusting interest rates, given the current balance of risks between inflation and unemployment.

Speaking at a Fed-hosted banking conference in Dallas on Monday, Logan said the risks tied to the Fed’s dual mandate—price stability and maximum employment—appear to be roughly balanced.

"Monetary policy is really well positioned for us to wait and be patient and watch the data, knowing that if the risks are to materially change on either side, we're well positioned to act," she said.

Logan added that if incoming data significantly alters policymakers’ assessment of the risk balance, the Fed would be prepared to adjust accordingly.

Logan, who is not a voting member of the Federal Open Market Committee, emphasized the importance of ensuring that price increases resulting from tariffs do not lead to persistent inflation.

She also stressed the need for monetary policymakers to closely monitor both survey-based indicators and market signals. While market indicators remain stable, she warned that liquidity issues could weigh on them.