FED'S LOGAN: SHOULD NOT RULE OUT RATE HIKE GIVEN RECENT EASING IN FINANCIAL CONDITIONS
The Federal Reserve (Fed) Bank of Dallas President Lorie Logan said on Saturday that the central bank may need to continue raising its short-term policy rate to keep a recent decline in long-term bond yields from rekindling inflation.
Key quotes
“Premature easing of financial conditions could allow demand to pick back up.”
“If we don't maintain sufficiently tight conditions, there is a risk inflation will pick back up, reversing progress.”
“Appropriate to consider parameters to guide the decision to slow the Fed's balance sheet runoff.”
“Labor market 'is'still tight' but continues to rebalance.”
"The financial system overall has more than ample bank reserves and liquidity, though no longer 'super abundant’.”
“Inflation in a much better place than last January, but the Fed's job is not yet complete.”
“We should slow the pace of asset runoff as the Fed's overnight reverse repurchase balances approach a low level
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