Federal Reserve Bank of Dallas President Lorie Logan said Thursday that interest rates are likely to stay near their current levels for an extended period.
Policymakers are in a wait-and-see mode as they evaluate how the administration’s decisions on trade, tax policy, and regulation will affect inflation and the job market. These factors could influence the Fed’s assessment of the economy and its future actions.
Logan noted that monetary policy is “in a good place,” pointing to a robust labor market and inflation slowly moving back toward the Fed’s target. That progress gives the central bank greater flexibility in setting policy.
At the same time, the Fed remains ready to act if incoming data indicate a material shift in economic conditions. Officials will monitor employment, inflation, and other key indicators to determine whether adjustments to interest rates or other tools are needed to sustain the recovery and keep inflation on target.
Overall, Logan’s remarks underline a cautious approach: maintain current policy for now while staying prepared to respond to changes in economic trends driven by both domestic policies and global developments.