Fed's Logan: May soon be appropriate to slow pace of rate increases

Dallas Federal Reserve President Lorie Logan said that October CPI inflation data is a welcome relief but added that they still have a long way to go, as reported by Reuters.

Breaking: US annual CPI inflation declines to 7.7% in October vs. 8% expected.

Key takeaways

"Inflation is much too high."

"It may soon be appropriate to slow the pace of rate increases so Fed can better assess how financial and economic conditions are evolving."

"Not seeing the decision about slowing the pace of rate hikes as being particularly closely related to the incoming data."

"Monetary policy must focus now on promptly restoring price stability."

"Adjustments in the financial system in response to interest rates are expected and appropriate to moderate demand and reduce inflation."

"We are seeing a normal financial market response to tighter monetary policy."

"Process of the Fed's cooling of the economy is just getting started."

"Labor market remains very tight."

"Wages continue to grow considerably faster than the rate consistent with 2% inflation."

"A slower pace should not be taken to represent easier policy related to the incoming data."

"Will look to a wide range of information to assess whether policy is sufficiently restrictive."

Market reaction

The US Dollar Index continues to push lower and was last seen losing 1.6% on the day at 108.65.