Federal Reserve Logan: Cooling inflation does not necessarily trigger interest rate cuts

Golden Finance reports that in 2026, FOMC voting member and Dallas Fed President Lorie Logan urged policymakers to remain cautious in the coming months, reiterating that a decline in inflation does not necessarily lead to further interest rate cuts. "Even if we get better data and it looks like (inflation) is indeed close to 2%, I think we should still be cautious. Because if the labor market and overall economy are strong, even under these circumstances, it doesn't necessarily mean there's room for further rate cuts," Logan said last Friday during a panel discussion held in Palm Desert, California. The Dallas Fed president's remarks were consistent with her previous statements. Logan had previously stated that interest rates may already be near neutral - a policy stance that neither stimulates nor restrains economic activity - so even if inflation weakens, there is no need for further rate cuts in the near term.