Fed's Logan says inflation will not fall without a rate hike
TLT•Logan warns against waiting too long
"Without any policy restraint, inflation will likely continue to trend above target until there's an unanticipated shock ... modest action in the near term would reduce the likelihood of needing to take sharper action later," Logan said in a statement.
Logan says policy needs modest near-term action
Dallas Federal Reserve President Lorie Logan said on Friday that without "modest action in the near term," the U.S. central bank will not be able to get inflation back on track to its 2% target, given a solid labor market that is strengthening and upside risks to price pressures.
"Labor, consumption, and financial market conditions indicate that monetary policy is not restraining the economy," said Logan, one of three Fed policymakers who dissented from the central bank's decision on Wednesday to leave its benchmark interest rate in the 3.50%-3.75% range.
Three policymakers dissented in favor of a rate hike
Logan, Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari voted in favor of a quarter-percentage-point rate hike at this week's two-day policy meeting. Nine other policymakers voted to leave rates unchanged.
