Fed: Rate hike should not be ruled out given recent easing of financial conditions – Lorie Logan

Federal Reserve Bank of Dallas President Lorie Logan said Saturday that the central bank may have to continue raising its short-term interest rate to prevent the recent decline in long-term bond yields. revive inflation.

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“A premature easing of financial conditions could allow demand to rebound.”

“If we do not maintain sufficiently restrictive conditions, there is a risk that inflation will rebound, reversing progress.”

“It is appropriate to consider parameters that guide the decision to slow the reduction of the Fed's financial balance sheet.”

“Labor market 'remains tense' but continues to rebalance.”

“The financial system in general has more than abundant banking reserves and liquidity, although no longer 'superabundant'.”

“Inflation is much better than last January, but the Fed's work is not done yet.”

“We should slow the pace of asset withdrawals as the Fed's overnight reverse repo balances approach a low level.”

Source: Fx Street

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