Fed's Logan: Models show that Fed funds could be 'very close' to neutral

Fed will 'most likely' need more cuts but should 'proceed cautiously'If Fed cuts too far past neutral, inflation could re-acclerateDifficult to know how many Fed rate cuts may be needed, and how soon they need to happenFed has made a great deal of progress in bringing inflation downFed not quite back to price stability yetUS economic activity is resilientLabor market cooling gradually but not weakening materiallySees upside risk to inflation, downside risk to employment, says financial conditions may pose biggest challenges for monetary policyIf bond yields continue to rise, the Fed may need less-restrictive policyLogan last spoke in late October and wasn't quite this hawkish. I think the Fed cuts in December but takes a pause after that and waits to see how things play out. This article was written by Adam Button at www.forexlive.com.