Dallas Federal Reserve President Lorie Logan indicated Thursday that the central bank may need to maintain current interest rates for an extended period, citing the need to assess the economic impact of the Trump administration’s trade, tax, and regulatory policies. Speaking at an event in Waco, Texas, Logan emphasized that policymakers require more time to determine whether these measures will ultimately drive inflation higher or suppress employment.
“With the job market remaining robust and inflation gradually approaching our target, the risks to our dual mandate appear balanced for now,” Logan stated. However, she cautioned that “it could take considerable time” to discern whether this equilibrium might shift decisively in either direction. The Fed official noted that current monetary policy settings remain appropriate but stressed the central bank stands ready to adjust if new data alters the risk calculus.
Logan’s remarks reflect the Fed’s cautious stance amid competing economic crosscurrents—strong labor markets versus potential inflationary pressures from fiscal policies and trade measures. Her comments suggest rate cuts remain off the table until clearer evidence emerges about the lasting effects of the administration’s economic policies on price stability and employment.
Related topics：
