Logan Says Fed Needs to Hold Rates Longer to Cool Inflation

Federal Reserve Bank of Dallas President Lorie Logan said that while policymakers will likely need to hold interest rates steady for a bit longer to fully cool inflation, it’s also possible they may need to pivot to cutting if inflation and labor markets soften.

“All this adds up, for me, to a base case in which monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target — and in this base case, we can sustain maximum employment even with modestly restrictive policy,” Logan said Tuesday.