Federal Reserve's Logan Discusses Potential Rate Decisions for 2025

According to Odaily, Federal Reserve official Logan has outlined potential monetary policy directions for 2025, emphasizing two main options: resuming interest rate cuts "as soon as possible" or maintaining current rates for "a considerable period." Logan indicated that a deterioration in the U.S. job market could prompt the Federal Reserve to lower rates. Conversely, a robust labor market might suggest that policy rates are nearing a neutral level. Achieving a 2% inflation rate is not a prerequisite for the Federal Open Market Committee (FOMC) to consider rate cuts. Logan also stressed the importance of central banks anchoring inflation expectations and noted that changes in trade policy could have lasting economic impacts.