Fed’s Logan: It is a lot too quickly to consider slicing rates of interest

These are definitely not dovish feedback.

• Believes it’s “much too soon” to consider cuts
• Have to see extra of the uncertainty resolved about which financial path we’re on
• FOMC ought to stay ready to reply appropriately if inflation stops falling
• More and more involved about upside dangers to inflation
• Imagine it can quickly be acceptable for Fed to resolve when to sluggish — not cease — stability sheet runoff
• Not able to put increased development productiveness in my forecast

The Dallas Fed has all the time been a house for hawks so this is not a shock however these are in all probability the starkest feedback this 12 months. The remark about ‘responding appropriately’ is not fully clear however that seems like hikes, which is not one thing anybody has been speaking about.

The US greenback hasn’t moved a lot on these feedback however there was some minor promoting in 2-year notes, boosting yields 1 to 1.5 bps.