(Reuters) -Federal Reserve Bank of Dallas President Lorie Logan on Thursday said the U.S. central bank appropriately took out some insurance against any sharp deterioration in the labor market with its interest-rate cut last month, but needs to be “cautious” with any further rate cuts because inflation is running above target and is heading upward.

“We need to be very cautious about rate cuts from here and make sure that we appropriately calibrate policy so that you don’t ease conditions too much and only to have to reverse course, which would be very painful in terms of restoring price stability,” Logan told a classroom of economics students at the University of Texas at Austin’s graduate school of business.

(Reporting by Ann Saphir)

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