(Bloomberg) — Federal Reserve Bank of Dallas President Lorie Logan on Thursday outlined what she’s looking for to show the US central bank has made enough progress in its battle to cool price pressures.
(Bloomberg) — Federal Reserve Bank of Dallas President Lorie Logan on Thursday outlined what she’s looking for to show the US central bank has made enough progress in its battle to cool price pressures.
“As you surely know, inflation has been much too high,” Logan said in opening remarks to a Fed Listens event in Odessa, Texas. “The Fed has raised interest rates by 4.5 percentage points over the past year to bring the economy into better balance.”
Logan said she’s looking for sustained improvement in inflation statistics, an economy that’s evolving as forecast and a change in the factors underlying inflation, including a hot labor market and imbalance in supply and demand.
The Dallas Fed chief, whose remarks were brief and didn’t touch on her outlook for the economy or monetary policy, also said she’s been looking at the impact of banking sector stresses on the broader economy. Logan is a voter on this year’s policy-setting Federal Open Market Committee.
Fed Governor Michelle Bowman also delivered brief remarks at the event, held at Odessa College, and likewise avoided any explicit policy comment.
“Lately, as you know, the Fed has been focused on lowering inflation, which is essential if we want to support a growing economy and rising incomes,” Bowman said.
The US central bank has raised rates at a fast clip over the past year, bringing the benchmark interest rate to a target range of 4.75%-5%. Market participants expect policymakers to deliver one more 25 basis-point hike, at their May 2-3 meeting, before pausing.
Fed officials have said they’re closely watching the tightening of lending conditions following the collapse of Silicon Valley Bank in March and the ensuing financial-market turmoil.
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