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Dallas Fed President backs interest rate hike to fight inflation

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Dallas Federal Reserve President Lorie Logan supports raising interest rates to curb inflation, signaling potential opposition to holding rates steady at the upcoming July meeting.
  • Inflation has remained above the Fed's 2% target for over five years, burdening households and businesses.
  • Logan emphasized that a single month's easing of inflation is insufficient and that monetary policy must anticipate future economic conditions.

Dallas Federal Reserve President Lorie Logan stated her support for increasing interest rates to combat inflation, suggesting she may oppose keeping rates unchanged at the Federal Reserve's upcoming policy meeting in late July. Logan indicated that a modest rate hike could help the Fed balance economic prospects and risks.

I currently believe that a modest increase in interest rates would help the Fed balance the outlook and risks

— Lorie LoganExplaining her support for a rate hike to curb inflation.

Logan noted that inflation has persisted above the Federal Reserve's 2% target for more than five years, creating financial strain for families and businesses. "I currently believe that a modest increase in interest rates would help the Fed balance the outlook and risks," she said, speaking in Houston.

just one month of easing is not enough

— Lorie LoganEmphasizing that recent inflation data is insufficient to change policy.

As one of the 12 voting members of the Federal Open Market Committee (FOMC), Logan's stance carries weight for the July 28-29 meeting. Despite a decrease in the Consumer Price Index (CPI) from 4.2% in May to 3.5% in June, Logan stressed that "just one month of easing is not enough." She likened monetary policy to ice hockey, emphasizing the need to "skate to where the puck is going."

Monetary policy is like ice hockey; you have to skate to where the puck is going.

— Lorie LoganIllustrating the need for proactive monetary policy.

The Federal Reserve has a dual mandate of price stability and maximum employment. Traditionally, it maintains high interest rates to fight inflation and lowers them to stimulate employment. Logan asserted that inflation has been "too high for too long" and does not appear to be moving towards the 2% target.

inflation has been too high for too long, and does not appear to be moving towards the 2% target

— Lorie LoganDescribing the current inflation situation.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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