“I believe it’s much too soon to think about cutting interest rates,” Federal Reserve Bank of Dallas President Lorie Logan said on Friday, citing upside risks to inflation.

Key takeaways

"Need to see more of the uncertainty resolved about which economic path we’re on."

"Increasingly concerned about upside risk to the inflation outlook."

"FOMC should remain prepared to respond appropriately if inflation stops falling."

"Difficult to predict exactly when overnight reverse repo balances will be depleted."

"Believe it will soon be appropriate for the FOMC to decide when to slow - not stop - the runoff of our asset holdings."

"Slower but still meaningful run-off pace will provide more time for banks and money market participants to redistribute liquidity and for the Fed to assess liquidity conditions."

"Taper will also reduce the risk of going too far."

"Taper should not have much effect on broader financial conditions."

"Taper is unrelated to considerations of the appropriate degree of policy restriction."

"Not ready to put higher trend productivity in my baseline outlook."