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Dallas Fed President Lorie Logan emphasized today that while additional rate cuts will likely be necessary, “it’s difficult to be sure how many cuts may be needed and how soon they may need to happen.”
Logan also reiterated that the “neutral” rate—the level at which the interest rate neither stimulates nor restricts the economy—may be higher than initially estimated.
She suggested that the current rate is close to this neutral level, though precise measurement is challenging.
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