The Federal Reserve should slow down the pace of its interest-rate hikes so officials can better see where they are headed, Dallas Fed President Lorie Logan said Wednesday. “A slower pace is just a way to ensure we make the best possible decisions,” Logan said in a speech to the University of Texas at Austin McCombs School of Business.
“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,” she added. A slower pace would translate into a quarter-percentage-point move at the Fed’s next meeting Jan. 31- Feb. 1. Last month, the Fed slowed the pace of its steady rate hikes to a half-percentage-point increase, to a range of 4.25%-4.5%. In her prepared remarks, Logan said she supported that decision, “and the same considerations suggest slowing the pace further at the upcoming meeting.” Fed Chairman Jerome Powell told reporters last month that the pace of rate hikes is not as important as the ultimate level they reach. Logan said goin …