Dallas President Fed Lorie Logan has voiced concerns about inflation and suggested that a more restrictive monetary policy may be necessary. She indicated that, based on the recent economic data and the Fed’s dual-mandate goals, it would have been fitting to raise the federal funds target range FOMC June meeting.
However, Logan pointed out the “challenging and uncertain environment,” arguing that “it can make sense to skip a meeting and move more gradually.”
Logan expressed deep concerns about whether inflation will return to target levels in a timely and sustainable manner. She further noted, “the continuing outlook for above-target inflation and a stronger-than-expected labor market calls for more-restrictive monetary policy.”
On the notion of a delayed impact from past policy actions, Logan expressed skepticism, saying, “I’m skeptical about the potential for large additional effects from this channel.” This stance challenges the widely held view that policy measures often take time to influence the economy, suggesting the need for swift action in addressing the current economic issues.
