Fed’s Logan: Tariff driven inflation mustn’t take root

Dallas Fed President Lorie Logan emphasized today that Fed must be vigilant in preventing tariff-related price increases from “fostering more persistent inflation”.

She noted that the inflationary impact of tariffs hinges on two key variables: how rapidly businesses pass higher import costs onto consumers, and whether long-term inflation expectations stay anchored.

“A sustained burst of inflation could lead households and businesses to expect further price increases, especially following the persistently elevated inflation in recent years.” she warned.