Fed’s Logan: Important to keep tariff-related price rises from fostering inflation

Forex Short News
  • For now, stance of Fed policy is well positioned
  • Higher-than-expected tariffs would very likely raise both unemployment and inflation
  • Sustained burst of inflation could lead to rise in inflation expectations
  • Inflation persistence will depend on how quickly companies pass through cost increases, and if long-term inflation expectations remain well anchored

Logan is a hawk so I wouldn’t expect her to push for rate cuts. That said, she isn’t exactly banging the drum for holding or hiking.

This article was written by Adam Button at www.forexlive.com.