Investing.com -- Federal Reserve Bank of Dallas President Lorie Logan said Friday that uncertainty over the economic outlook and ongoing inflation concerns mean the central bank should not signal that its next policy move will be a rate cut.

Logan explained her decision to dissent against language in the Federal Open Market Committee meeting statement this week, saying the Fed should not provide forward guidance that implies a preference for rate cuts given current two-sided risks to monetary policy.

She joined two other regional Fed bank presidents in voting against language suggesting the Fed's next move would be a rate cut. Logan supported the Fed's decision to hold its interest rate target steady at between 3.5% and 3.75%.

The economic outlook is highly uncertain amid ongoing worries about returning inflation to the 2% target, Logan said. Given the outlook, the FOMC's next rate change could be either an increase or a cut, she said.

Logan said she is increasingly concerned about getting inflation back to 2%, while noting that the job market has been stable. She added that the outlook for the inflation path remains uncertain.

When the FOMC provides forward guidance, it is important for that guidance to reflect the policy outlook, Logan said.