Federal Reserve Bank of Dallas President Lorie Logan said she does not support the U.S. central bank's decision to cut interest rates this week and will likely consider it appropriate to keep rates unchanged at its next meeting because inflation remains too high.

"I don't see a need to cut rates this week. And I would find it difficult to cut rates again in December unless there is clear evidence that inflation will fall more quickly than expected or that the labor market will cool more rapidly," Logan said Friday in prepared remarks for an event in Dallas.

Fed officials cut their benchmark interest rate this week by a quarter of a percentage point for the second straight month after a sharp slowdown in hiring over the summer raised concerns about the labor market.

Chairman Jerome Powell, speaking to reporters on Wednesday after the decision, said another cut in December was not a foregone conclusion, noting that some of his colleagues were concerned about inflation.

Although Logan did not vote on monetary policy this year, he participated in Federal Open Market Committee discussions and will take a rotating role on the voting panel in 2026. Two Fed officials voted against the decision at this month's meeting, with Kansas City Fed President Jeff Schmid favoring keeping rates steady and Governor Stephen Miran dissenting for the second consecutive meeting, favoring a larger half-point cut. (alg)

Source: Bloomberg