Lorie Logan, Speech: The U.S. Economic Outlook and Monetary Policy

Fed Funds

“Considering the uncertainties we face, I don’t find it particularly helpful at this time to lock in on a peak rate or the precise path rates will follow. Rather, we need to keep our eyes on the economic and financial outlook and lay out a strategy that is both flexible and robust so we are best positioned to achieve our goals however the outlook evolves.”

25bps or 50bps

“Now, if you’re on a road trip and you encounter foggy weather or a dangerous highway, it’s a good idea to slow down. Likewise if you’re a policymaker in today’s complex economic and financial environment. That’s why I supported the FOMC’s decision last month to reduce the pace of rate increases. And the same considerations suggest slowing the pace further at the upcoming meeting … To be clear, I don’t see the argument for a slower pace as depending very much on the latest data. Nor should a slower pace signal any less commitment to achieving our inflation goal … A slower pace is just a way to ensure we make the best possible decisions.”