In her speech at an event in San Antonio, Dallas Fed President Lorie Logan discussed current economic trends and the necessity of maintaining high interest rates to address inflation.
Tackling Inflation and Interest Rates
Logan emphasized that the monetary policy must remain tight to achieve inflation targets. She expressed her expectation for the Federal Reserve to keep rates unchanged in the foreseeable future.
Need for Rate Cuts
Regarding the potential need for rate cuts, Logan indicated this could become necessary if both inflation and labor markets significantly weaken. She called for a cautious approach to rate decisions, given the inherent risks.
Impact of Federal Officials' Independence
Logan also addressed the issue of the independence of federal officials amid increasing pressure from politicians. She noted that optimal policy requires careful consideration, particularly when adjusting rates, to maintain economic balance.
Lorie Logan's remarks highlight the current state of the U.S. economy and the need for a careful approach to monetary policy. Her statements indicate the complex challenges faced by the Federal Reserve in managing inflation and labor market pressures.
