Fed's Logan: Another rate hike shouldn't be ruled out

Fed's Logan warned that the central bank may need to resume raising short-term policy rates to prevent the recent decline in long-term bond yields from reigniting inflation. "If we do not maintain sufficiently tight financial conditions, we risk a return to inflation and reverse the progress we have made," Logan said. Logan also said, "Restrictive financial conditions have played an important role in keeping demand consistent with supply and keeping inflation expectations stable. Inflation is already close to the Fed's 2% target. The labor market, although still tight, is rebalancing." , if we do not maintain sufficiently stringent financial conditions, we cannot hope to maintain price stability." (Golden Ten)