Fed Cautions on Rate Cuts Amid Inflation Fears, Market Bets On 25 Basis Point Move

Federal Reserve officials are navigating a delicate balance between inflation concerns and the possibility of rate cuts. Lorie Logan, Dallas Fed president, highlighted the potential impact of Trump tariffs on inflation, suggesting caution against further reductions in October. While markets anticipate a 25-basis-point cut this month based on weaker job growth data, some officials advocate for deeper easing measures. Dallas Fed President Logan stressed that current monetary policy is only modestly restrictive and necessary to combat price increases.