Inflation concerns persist, Fed’s Logan reaffirms 2% target

Lorie Logan, President of the Dallas Federal Reserve, has expressed ongoing concerns about the current inflation rate, which is trending towards 3%, deviating from the Federal Reserve’s consistent 2% target. Speaking at a conference on Tuesday, Logan emphasized the need to maintain stringent financial conditions to address this issue.

She acknowledged a recent decline in inflation but argued that it remains excessively high. Logan also noted minor easing in the labor market, despite its overall strength and job growth surpassing trends in the U.S. economy. She stated that only repeated energy shocks could significantly disrupt the U.S. economy and influence short-term inflation expectations.

Logan highlighted the U.S.’s status as a net energy exporter and its decreased reliance on imported energy as factors that mitigate potential economic repercussions from such shocks. However, she pointed out that the ongoing war in the Middle East presents an economic risk that requires vigilant monitoring.

In her remarks, Logan also pointed to fluctuations in the 10-year yield and shifts in the financial landscape since the last Federal Open Market Committee (FOMC) meeting. She reaffirmed her commitment to closely examine these variables, along with incoming data, ahead of their upcoming meeting.

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