February 17, 2025
United States:
Lower Inflation Wouldn’t Assure Rate Cuts, Fed’s Logan Says
Federal Reserve Bank of Dallas President Lorie Logan urged policymakers to remain cautious in the coming months, reiterating lower inflation wouldn’t necessarily prompt further interest-rate reductions.
“Even if we do get better data — and it does look like it’s coming close to 2% — I think we should be cautious,” Logan said Friday during a moderated discussion in Palm Desert, California. “Because if the labor market and the overall economy is strong, even in that environment, it doesn’t necessarily mean there’s room to cut rates further.”
Europe:
ECB Watchers Are Now Forecasting Even Lower Rates for 2026
Euro-zone forecasters are increasingly predicting that the European Central Bank will resume interest-rate cutting after a pause with a reduction below 2% in 2026.
Frankfurt officials are still widely expected to lower their deposit rate by 25 basis points at each of the next three meetings from the current level of 2.75%, according to Bloomberg’s monthly survey of economists.
Asia:
Japan’s Economy Outperforms Forecasts, Keeping BOJ on Track
Japan’s economy outperformed forecasts as business spending and net trade helped fuel a third straight quarter of growth that will keep the Bank of Japan on track for further interest rate hikes. The yen strengthened.
Gross domestic product grew at an annualized pace of 2.8% in the three months through December from the prior period, the Cabinet Office reported Monday.
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