According to Jinshi, Federal Reserve official Logan stated in her latest speech that it is taking too long for inflation to return to the 2% target. The remark highlights a key challenge in current macroeconomic policy: although overall price growth has cooled significantly from multi-decade highs, sticky inflation in core services and housing costs remains more persistent than expected, making the "last mile" of disinflation highly uncertain.
Logan, often viewed as a hawkish member of the Fed committee, has consistently expressed caution about inflation risks. Her latest comments reaffirmed policymakers' wariness about cutting rates prematurely. The market widely interpreted her tone as a signal that interest rates will remain restrictive for an extended period. Until there is clear evidence of sustained downward momentum in inflation, the Fed's policy pivot is likely still some way off. Following her remarks, market expectations solidified for rates to hold steady at the June meeting.