Federal Reserve's Logan Warns of Tariff-Induced Inflation Risks

According to Odaily, Federal Reserve official Logan emphasized the importance of preventing tariff-induced inflation from becoming persistent. She cautioned that following the recent inflation surge in the United States, Americans' expectations for future price increases might become fragile. Logan stated, "To sustainably achieve our dual mandate goals, it is crucial to prevent any tariff-related price hikes from leading to more enduring inflation." She expressed confidence in the current stance of monetary policy. Logan noted that the persistence of inflation's impact would depend on how quickly businesses can navigate rising costs and whether long-term inflation expectations remain stable. She added that ongoing inflation, coupled with Americans' experiences over the past few years, might lead households and businesses to anticipate further price increases. "Historical experience tells us that when high inflation expectations become entrenched, the path to restoring price stability is longer, the job market becomes weaker, and economic scars deepen," Logan remarked.