Federal Reserve Bank Dallas branch head President Lorie Logan, from the Q&A session following her earlier speech (post on that is linked below)
- achieving price stability will require labor market loosening, how much is highly uncertain
- if we find unemployment rate goes up, historically that comes with a recession, but possibly different this time
- the better data we have seen on inflation ios welcome news
- would want to see a lot more to make us confident of a shift in the inflation trend
- would also want to see easing in labor market to be confident that the trend in inflation is sustainable
- I am also focused on financial conditions
- once have stopped raising rates the risks will still be two-sided. May need to raise rates again depending on data
- balance sheet reductions are in the background and separate from the interest rate tool
- decision on balance sheer reductions won't intersect with decision on Fed policy rate
Earlier from Logan:
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2023 Federal Open Market Committee (FOMC) meetings:
