Cooling labor market or demand could be evidence it's time to cut rates. Choices in 2025 between resuming rate cuts or holding rates steady for a prolonged period. Fed should guide rate path to maintain anchored inflation expectations. There is uncertainty due to trade policy and volatile financial conditions.

Dallas Federal Reserve President Lorie Logan believes that a higher neutral interest rate has left little room for further monetary policy easing, even if inflation comes in close to the Fed's target in the next few months.