Fed's Logan says she saw no need for rate cut, opposes one in December

(Reuters) -The Federal Reserve should not have cut interest rates this week and should not do so again in December, Dallas Fed President Lorie Logan said on Friday, citing a 'balanced' labor market in no immediate need of support and inflation that looks likely to stay above the U.S. central bank's 2% goal for too long.  "This economic outlook didn't call for cutting rates," Logan said in remarks prepared for delivery to a Dallas Fed banking conference. "I did not see a need to cut rates this week. And I'd find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labor market will cool more rapidly." Logan's remarks follow the Fed's decision on Wednesday to lower its policy rate for a second time this year by a quarter of a percentage point to what is now a range of 3.75%-4.00%. Fed Chair Jerome Powell said the move was aimed at preventing the labor market from slowing further. Another rate cut in December, he said, is not a foregone conclusion, particularly given the lack of official economic data including measures of inflation and unemployment while the federal government shutdown continues.  Logan, who does not have a vote on the Fed's policy-setting committee this year, said that private-sector data, state-level unemployment claims, and the Fed's own network of business and community contacts do give the central bank visibility into the economy, and the picture is far from troubling. (Reporting by Ann Saphir; Editing by Paul Simao)

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