(Adds Logan’s comments in paragraphs 2, 4)
By Ann Saphir
NEW ORLEANS, La., May 10 (Reuters) – Dallas Federal Reserve President Lorie Logan said on Friday it was unclear whether monetary policy was tight enough to bring inflation back to the the 2% target set by the American central bank, and that it was too early to reduce it. interest rate.
There are still good reasons for inflation to return to the Fed’s 2% target in the coming years, Logan said at the Louisiana Bankers Association’s annual conference. “There are also significant upside risks to inflation that concern me, and I think there are also uncertainties about how restrictive policy is and whether it is restrictive enough to keep us on this path.”
The American central bank maintained its
key rate
in the 5.25% to 5.50% range, with Fed Chair Jerome Powell noting that the lack of progress on inflation so far this year means rates will likely have to stay where they are longer than previously thought.
“As I think about appropriate policy, I think it’s simply too early to be thinking about a rate cut,” Logan said Friday. “I think I need to see some of these uncertainties resolved about the path we’re taking, and we need to remain very flexible on policy, and continue to look at the data that’s coming in and watch how financial conditions evolve and make sure the judgments we make are appropriate” (Reporting by Ann Saphir; editing by Paul Simao)
yahoo
