The Fed will need to gauge whether monetary policy is now sufficiently restrictive to sustainably return inflation to its 2% goal, she says.
Dallas Fed chief Lorie Logan to a business audience Thursday: “My base case, though, is that there is work left to do.”Federal Reserve Bank of Dallas President Lorie Logan says skipping an interest-rate hike at the U.S. central bank’s upcoming policy meeting may be appropriate but it doesn’t “imply stopping” additional increases to get inflation back to 2%.
The Federal Open Market Committee, the group of Fed policymakers that sets rates, will gather Sept. 19 and 20 and debate whether the current level of its benchmark lending rate is high enough to cool demand and price increases. Logan is a voting member of the committee.“Another skip could be appropriate when we meet later this month,” Logan said Thursday in remarks prepared for delivery at the Dallas Business Club. “But skipping does not imply stopping.