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.

In a Reuters interview, San Francisco Fed President Mary Daly said, “lifting off in March when you have an unemployment rate of 3.9%, and an inflation rate that’s north of our price stability goal of average 2% inflation, to me seems a quite reasonable thing.” But she didn’t offer her prediction on the number of rate hike needed this year.

Daly also said even with the rate hikes, “we are not bridling the economy and starting to restrain it.” Rate would remain well below the “neutral” level of 2.50%. Meanwhile, once Fed has raised rates once or twice, she said, it should start shrinking the balance sheet as a “predictable” manner.

Fed Governor Lael Brainard said in a speech that while employment and activity “rebounded faster and more sharply than anticipated”, ” recent resurgence in COVID cases is a sober reminder that the pandemic remains the key driver of the economy’s course”.

A “thick fog of uncertainty” is still surrounding the US and “downside risks predominate. She added, “the recovery is likely to face headwinds even if the downside risks do not materialize, and a second wave would magnify that challenge.”

The uncertainty is “calling for a sustained commitment to accommodation, along with additional fiscal support.”