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US Fed's Logan Says 'Smaller, Less Frequent' Hikes May Be Safer for Stability
Changing interest rates in "smaller, less frequent steps" can make it less likely that U.S. Federal Reserve monetary policy causes financial instability, Dallas Fed President Lorie Logan said on Tuesday. "Gradual policy adjustments can be helpful," Logan said at an Atlanta Fed economic conference. While not commenting on an upcoming Fed decision on whether to raise rates an 11th straight time, Logan said that "financial conditions can sometimes deteriorate nonlinearly, doing damage to the broader economy, but the risk of a nonlinear reaction can be mitigated by raising interest rates in smaller, less frequent ... (full story)