Fed’s Logan: Tariff-led price shocks must not become persistent inflation

    Dallas Fed President Lorie Logan said the current monetary policy setting is “well-positioned to to shifting risks. Speaking at a conference, Logan emphasized that Fed’s job is to prevent temporary price shocks, such as those from tariffs, from becoming an “ongoing persistent problem of inflation”.

    Logan highlighted that tariff-related inflation and broader policy uncertainty present dual threats: not only could they lift prices, but they might also undermine confidence and growth by generating market volatility.

    However, she acknowledged that so far the economy has shown resilience, with labor markets remaining balanced and overall conditions stable.