Fed's Logan: Inflation Returning to 2% Is Taking Too Long

According to a report by Jinshi, Federal Reserve official and Dallas Fed President Lorie Logan said that the time it is taking for U.S. inflation to return to the central bank's 2% target is too long. Her remarks directly reflect the concerns among policymakers that the disinflation process is moving more slowly than anticipated. Although headline inflation has cooled significantly from its peak following aggressive rate hikes, core inflation remains sticky and still some distance from the 2% goal. Logan's comments reinforce market expectations that the Fed will remain highly cautious before adjusting monetary policy. The Federal Open Market Committee is unlikely to alter its current rate stance without clearer evidence that inflation is sustainably on track toward the target.