Dallas Federal Reserve Pres. Lori Logan is exploiting her dissent at the FOMC meeting this week. The vote to keep rates unchanged was 8 to 4 with Fed Miran voting to cut rates while Fed’s Kashkari, Logan and voted to keep rates unchanged but to take out the easing bias from the official statement.

Logan says:

• Fed should not give guidance and point easing right now.
• That’s next rate move could be cut or hike.
• Economic outlook is very uncertain right now.
• Jobs market has been stable.
• Increasingly concerned about getting inflation back to 2%.
• Outlook for inflation path is uncertain.

Fed’s Kashkari and Hammack had similar thoughts:

• Kashkari: Pre-Iran: easing inflation and steady jobs pointed to gradual cuts
• Iran shock adds stagflation risk via oil and supply disruption
• Hammack: uncertainty up, inflation risks skew higher, easing bias outdated
• Both: hikes are back on the table if inflation persists

This article was written by Greg Michalowski at investinglive.com.



Source link