October 21, 2024 at 01:55PM
Comments from Logan:
Fed will need to be nimble with mon pol choices
Economy is strong and stable
Sees downside risk to job market, ongoing risks to inflation goal
Balance sheet cuts and rate cuts working in same direction
Liquidity still abundant in money markets
Over time wants ‘negligible’ balances in reverse repo facility
Fed could change reverse repo rate if cash doesn’t leave facility
The Fed has set a benchmark on easing that pegs to top of the tolerable unemployment range at 4.4-4.5% so that’s the marker on when there will be more/less easing than the gradual slide to 3.50% that’s priced in.
This article was written by Adam Button at www.forexlive.com.
Fed’s Logan: Expects gradual cuts if the economy meets forecasts