Federal Reserve's Logan states that policy stance is appropriate amid inflation concerns

Investing.com - Lorie Logan, President of the Dallas Federal Reserve Bank, stated on Friday that monetary policy is well prepared to address economic risks, although she remains concerned about the path of inflation returning to the Fed’s 2% target.

Speaking at Columbia University, Logan expressed cautious optimism about the inflation trajectory but did not show full confidence. She indicated that she is not yet fully convinced that the economy is on track to bring inflation back to 2%, and pointed out that tariffs still play a role in the system.

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Logan noted that the Supreme Court’s ruling on tariffs adds new uncertainty to the outlook for import taxes. She stated that there are still upside risks to inflation in the economy.

The Dallas Fed President said that uncertainty in the economy remains ongoing, with one of the biggest uncertainties coming from the technology sector. She expressed concerns that demand in the economy could exceed supply.

Logan stated that she supports the Federal Reserve’s decision in January to keep interest rates unchanged amid a stable labor market.

Regarding the labor market, Logan said that, at present, artificial intelligence has not replaced workers.

In her comments on the banking sector, Logan emphasized the importance of banks considering depositors’ diversity and ensuring access to liquidity when needed.

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