Fed Considers Gradual Rate Cuts Amid Job Growth

The Federal Reserve is navigating a complex economic landscape as it considers future interest rate cuts. Despite a recent 50 basis point reduction, officials like Dallas Fed President Lorie Logan and Fed Governor Adriana Kugler suggest a more gradual easing approach, contingent on inflation trends and labor market conditions. The strong September jobs report has shifted market expectations towards smaller, more incremental cuts. Fed Vice Chair Philip Jefferson and Atlanta Fed President Raphael Bostic emphasize balancing risks to inflation and employment, with inflation risks diminishing while employment risks increase. Boston Fed President Susan Collins and other officials remain data-dependent, watching for any shifts that could alter the Fed's course. Overall, while inflation nears the Fed’s target, the robust labor market tempers the urgency for aggressive rate cuts.