Dallas Fed President Lorie Logan comments in Q&A

Dallas Fed President Lorie Logan comments in Q&A

In a recent speech, Federal Reserve Bank of Dallas President Lorie Logan offered insights into the central bank's approach to interest rates and inflation. Speaking at an event in San Antonio, Logan emphasized the need for the Fed to maintain interest rates at their current levels to combat inflation, which has been persistently higher than the central bank's target of 2%.

Logan stated that while the Fed has kept its policy rate in the 4.25%-4.50% range since last December, it may need to hold rates steady for an extended period to ensure inflation returns to the 2% target. She noted that tariffs implemented by the Trump administration could potentially push up prices, but she remained cautious about the extent and duration of their impact on inflation [1].

The Dallas Fed President also acknowledged the possibility of a rate cut if inflation and the labor market soften. "It’s also possible that some combination of softer inflation and a weakening labor market will call for lower rates fairly soon," Logan said. However, she cautioned that cutting rates too soon could risk deeper economic scars and a longer road to price stability [2].

Logan's comments come as the Fed continues to grapple with the dual mandate of maintaining maximum employment and stable prices. She noted that the labor market remains solid, with the stock market at near all-time highs and fiscal policy providing a "tailwind" for growth. However, she warned that putting too much faith in short streaks of good inflation news could lead to disappointment [3].

Logan's remarks follow a series of Fed speeches and economic data releases that have highlighted the central bank's cautious approach to monetary policy. Next week's economic calendar includes several key reports, including the consumer price index and the manufacturing and retail sales data, which could provide further insight into the Fed's decision-making process [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-15/logan-says-fed-needs-to-hold-rates-longer-to-cool-inflation
[2] https://www.marketwatch.com/economy-politics/calendar
[3] https://ca.finance.yahoo.com/news/feds-logan-says-her-case-235427822.html