Federal Reserve Bank of Dallas President Lori Logan said Friday that monetary policy is well positioned to address economic risks
although she remains concerned about the trajectory of inflation toward the central bank's 2% target.
Speaking at Columbia University, Logan expressed cautious optimism about the inflation trajectory, but stopped short of full confidence. She said she is not fully convinced the economy is on track to reach 2% inflation, noting that tariffs are still coursing through the system.
Logan pointed to the Supreme Court's tariff decision as a source of renewed uncertainty about the outlook for import taxes. She stated that risks of rising inflation remain in the economy.
The Dallas Fed President noted that uncertainty in the economy remains, with some of the greatest uncertainties coming from the technology sector. She expressed concern that economic demand could outstrip supply.
Logan stated that she supported the Federal Reserve's decision in January to keep interest rates unchanged amid a stabilizing labor market.
Regarding the labor market, Logan noted that it currently does not appear that artificial intelligence is displacing workers.
Commenting on the banking sector, Logan emphasized the importance of banks considering depositor diversity and ensuring their readiness to access liquidity when needed.
