Fed Dallas President: Further Rate Cuts Likely Only If Jobs Market Weakens; Policy Stance Depends on Data

Fed Dallas President Lorie Logan (Jan 10, 2026) stated further Federal Reserve rate cuts are unlikely until the labor market shows "substantial weakness" and inflation is falling, signaling policy may need adjustment only under those twin conditions. She emphasized that the coming months' data will determine whether current policy can simultaneously achieve price stability and full employment. Logan, who holds a vote at the Fed, supports the December 2025 decision to keep rates unchanged. She noted employment growth has approached "loss-minus" levels relative to population growth, implying stability, while inflation remains above 2% and the path to回落 is uncertain. With the neutral interest rate range already reached, monetary policy is less able to stimulate demand without pushing inflation higher. Logan clarified资产负债表 adjustments—about $110 billion in Treasury purchases since late December—are technical and not indicative of monetary policy stance. She stressed reserve levels must be adjusted with economic and regulatory changes to maintain system efficiency and support markets where interest rates should remain near the policy rate. She praised the large use of the Term Auction Facility as a helpful tool.