Dallas Fed's Logan Raises Prospect of Rate Hike Later This Year as Inflation Lingers Above 2%
Federal Reserve Bank of Dallas President Lorie Logan said officials may need to raise interest rates later this year to bring inflation back to the Fed's 2% target, arguing that monetary policy is not restraining the economy and currently looks neutral or loose rather than restrictive.
Logan said inflation is taking too long to return to target and is trending toward the mid-2% range, with higher gasoline prices feeding through to other goods and services. She also cited strong economic activity, accommodative financial conditions, a stable labor market and robust corporate earnings as reasons the Fed may need a mildly restrictive policy stance.
From the sources (5 posts)
@financialjuiceFed's Logan: Increasingly concerned that higher interest rates could be necessary later this year. Monetary policy is not restraining the economy. Inflation is taking too long to return to 2%. Economic activity remains strong, and corporat
@businessFederal Reserve Bank of Dallas President Lorie Logan said officials may need to raise interest rates later this year to bring inflation back to the US central bank’s 2% target
@financialjuiceFed's Logan: The higher price of gas is feeding through to the prices of other goods and services.
@financialjuiceFed's Logan: Need mildly restrictive policy.
@financialjuiceFed's Logan: Current monetary policy looks neutral or loose.