The Chapultepec Conference, Bank for International Settlements Americas Office, Mexico City.
February 06, 2025, Dallas Fed President Lorie K. Logan remark and comment summary
https://www.dallasfed.org/news/speeches/logan/2025/lkl250206
If inflation rises, it will be a signal that monetary policy has more work to do both to restore price stability and to keep demand in balance with supply so price stability can be sustained. However, even if inflation comes in close to 2 percent in coming months, it would NOT necessarily allow the FOMC to cut rates soon. This assumes labor market indicators hold right where they were in 2024, and consumer spending and business investment also stay strong.
There are many uncertainties right now beyond the near-term inflation and employment data. Trade policy and financial conditions have been volatile. The monetary policy implications of these uncertainties generally come down to whether sustainably restoring price stability requires keeping rates at least at the current level or moving lower.
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