Dallas Fed President Lorie Logan addressed concerns on Thursday regarding the possibility of the Federal Reserve skipping a rate hike at its upcoming meeting. Logan emphasized that if this decision is made, it does not imply that the central bank will halt future hikes altogether.

After abstaining from raising rates at its June meeting, the Federal Reserve did choose to increase its benchmark interest rate by 25 basis points to a range of 5.25%-5.5% during its most recent gathering in July.

Market experts and derivative traders are inclined to believe that the Fed will once again forgo raising rates following the forthcoming policy meeting set for September 19-20.

During a speech at the Dallas Business Club at Southern Methodist University, Logan highlighted that another skipped rate hike "could be appropriate." However, she made it clear that such an action should not be misconstrued as a decision to cease future hikes.

Logan further pointed out that certain indicators of inflation continue to remain relatively high. The Dallas Fed's preferred inflation measure, which excludes major price fluctuations within a given month, indicated a 2.8% rate over the past three months.

"These figures suggest that it is still premature to confidently predict a timely return to a 2% inflation rate," Logan stated.

On Thursday, the 10-year Treasury yield (BX:TMUBMUSD10Y) slipped to 4.25% during trading.

For more insights on the Federal Reserve's stance on monetary policy, see: "Fed's Williams says monetary policy is in a 'good place,' recession talk 'has vanished'."

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