Fed official: Further rate cuts may not be necessary even if inflation continues to cool

 Logan, a 2026 FOMC voting member and Dallas Fed President, said that interest rates may have reached a neutral level. Even if inflation continues to cool, it may avoid the need for further rate cuts. "What if the inflation rate approaches 2% in the next few months?" Logan said in a prepared speech at an event in Mexico City on Thursday. "Although this is good news, in my opinion, it may not necessarily lead to the Federal Open Market Committee (FOMC) cutting interest rates soon," she said. Logan said that in an environment of strong demand and a stable job market, inflation is falling back to the Fed's target, suggesting that the Fed's benchmark policy rate may be close to neutral. She added that if this situation continues, there will not be "too much" room for rate cuts in the short term. The neutral interest rate refers to the level at which the central bank's policy setting neither promotes nor hinders the economy. (Jinshi)