Fed Logan with quite hawkish comments on US monetary policy

FOMC member Logan comments today US monetary policy and rate cuts, signalling that inflation risk can temper Fed's dovish sentiments and dovish guidance.

• Spending, economic growth that's stronger than forecast poses upside risk to inflation
• Unwarranted further easing in financial conditions could also push demand out of balance with supply.
• The neutral Fed funds rate is uncertain; structural economic changes mean it may be higher than pre-pandemic.
• We remain attentive to inflation risks from supply chains, geopolitics and port strike.
• The US economy is strong and stable, but there are meaningful uncertainties around the outlook.
• As the labor market has cooled, we face more risk it will cool beyond what is needed to return inflation to 2%.
• Progress on inflation has been broad-based; the labor market has cooled and remains healthy.
• Inflation and the labor market are within striking distance of the Fed's goals.
• Upside risks to inflation mean the Fed should not rush to reduce rates.
• Recent trends in inflation for housing, other core services are encouraging and expected to come down over time.
• Less restrictive policy will help avoid cooling labor market more than necessary.
• Supported Fed's decision to begin normalizing policy by cutting the policy rate.
• We continue to see a meaningful risk inflation could get stuck above the Fed's 2% goal.
• Lowering the policy rate gradually would allow time to judge how restrictive monetary policy may or may not be.
• Normalizing policy gradually also allows the Fed to best balance labor market risks.
• Policy is not a preset, the Fed must remain nimble.