Inflation Concerns Persist as Fed’s Logan Reaffirms 2% Target

Lorie Logan, the President of the Dallas Federal Reserve, has voiced ongoing concerns about the current inflation rate, which is approaching 3% and deviating from the Federal Reserve’s traditional target of 2%. While speaking at a conference on Tuesday, Logan stressed the importance of maintaining strict financial conditions to tackle this issue.

Logan acknowledged a recent decline in inflation but maintained that it remains too high. She also pointed out slight easing in the labor market, despite overall strength and job growth outpacing trends in the U.S. economy. She emphasized that only repeated energy shocks could significantly disrupt the U.S. economy and affect short-term inflation expectations.

Logan noted the country’s status as a net energy exporter and reduced dependency on imported energy as factors that lessen potential economic impacts from such shocks. However, she raised concerns about the ongoing conflict in the Middle East, identifying it as an economic risk that necessitates careful monitoring.

Additionally, Logan referred to fluctuations in the 10-year yield and changes in the financial landscape since the last Federal Open Market Committee meeting. She reiterated her commitment to closely analyze these variables, along with incoming data, in anticipation of their upcoming meeting.

This article was generated with the support of AI and reviewed by an editor.