Fed’s Logan: Inflation is taking too long to return to 2%

Lorie Logan, President of the Federal Reserve (Fed) Bank of Dallas, said on Wednesday that inflation remains too elevated and warned that higher interest rates could be needed later this year if price pressures fail to ease further.

Key quotes:

Inflation is trending toward the mid-2s, not all the way to 2%.

Trimmed-mean inflation is not currently a reliable signal.

Financial conditions are accommodative, and the labor market is stable.

Economic activity remains strong, and corporate earnings are going gangbusters.

Inflation is taking too long to return to 2%.

Monetary policy is not restraining the economy.

I am increasingly concerned that higher interest rates could be necessary later this year."