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Fed’s Logan: Fed’s policy stance is well positioned

During her Thursday remarks, Dallas Federal Reserve (Fed) President Lorie Logan warned that tariffs exceeding expectations would almost certainly spark a surge in both unemployment and inflation.

Key Quotes

  • Important to keep any tariff-related price increases from fostering more persistent inflation.
  • If higher inflation expectations get entrenched, the road to price stability is longer, and economic scars are deeper.
  • For now, the stance of Fed policy is well positioned.
  • Financial markets have been volatile.
  • Higher-than-expected tariffs would very likely raise both unemployment and inflation.
  • A sustained burst of inflation could lead to a 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.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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