Logan: Inflation Risks Remain Alive, Fed Remains Alert
Federal Reserve Bank of Dallas President Lorie Logan said the risk of rising inflation remains, but current monetary policy is well-positioned to address those risks. The statement was made at an event at Columbia University on Friday (February 20th).
Logan emphasized that economic uncertainty persists, and one of the biggest sources of uncertainty comes from the technology sector. She also believes that technological developments—including AI—still need to be monitored because their impact can ripple through productivity, demand, and even financial stability.
She supported the Fed's decision in January to hold interest rates, arguing that the labor market still appears solid. However, Logan struck a "cautious but optimistic" tone that the economy is on track to bring inflation back toward target.
However, Logan emphasized one point: she is not yet fully convinced that inflation is truly on track to reach 2%. She also expressed concern if economic demand outpaces supply, a condition that could maintain high price pressures.
Regarding the workforce, Logan noted that so far, AI has not been seen as a massive worker replacement. He also added that following the court ruling on tariffs, uncertainty about tariffs has increased—and many factors will still determine the direction of future policy.
In the banking sector, Logan emphasized the importance of banks understanding the diversity of depositors and ensuring readiness to access liquidity. As a side note, he mentioned that the estimated "breakeven point" for the current labor market is around 30,000 jobs per month—a benchmark for assessing whether the job market is strengthening or cooling.
Source: Newsmaker.id
