(Reuters)-Dallas Federal Reserve President Lorie Logan said on Thursday that the US Central Bank has made proper insurance against any sharp deterioration in the labor market with its interest rate cut last month, but it needs to be “cautious” with any other cuts, because inflation is above the goal and rising.
“We need to be very cautious about the cuts in rates going forward and make sure that we properly calibrate the policy so as not to make the conditions too flexible and have to reverse the course, which would be very painful in terms of price stability restoration,” Logan told a classroom of Economics Students at the University of Texas Postgraduate School in Austin.