Fed’s Logan says policy well positioned amid inflation concerns

Federal Reserve Bank of Dallas President Lorie Logan said Friday that monetary policy is well positioned to address economic risks, though she remains concerned about inflation's path back to the central bank's 2% target.

Speaking at Columbia University, Logan expressed cautious optimism about the inflation trajectory but stopped short of full confidence. She said she is not fully convinced the economy is on a pathway to 2% inflation, noting that tariffs are still working through the system, News.Az reports, citing CNBC.

Logan pointed to the Supreme Court tariff decision as adding new uncertainty to the outlook for import taxes. She said upside inflation risks remain present in the economy.

The Dallas Fed president said uncertainty continues in the economy, with one of the biggest uncertainties coming from the technology sector. She expressed concern about economic demand potentially outstripping supply.

Logan said she supported the Fed's January decision to hold interest rates steady amid a stabilizing job market.

On the labor market, Logan said it does not appear that artificial intelligence is displacing workers at this time.

Commenting on the the banking sector, Logan emphasized the importance of banks thinking about diversity of depositors and ensuring they are ready to access liquidity when needed.

News.Az 

By Faig Mahmudov