Fed Official Highlights Risks of Increased Tariffs

Dallas Federal Reserve President Lorie Logan raised concerns on Thursday about the potential economic impacts of heightened tariff levels. Speaking at the Peterson Institute for International Economics, Logan warned that such measures could lead to both higher unemployment and inflation.

"The stance of monetary policy is well positioned for now," Logan stated, emphasizing the importance of preventing tariff-related price increases from fueling persistent inflation. She outlined the challenges of reducing inflation once expectations become entrenched, noting the adverse effects on employment and the broader economy.

Logan also discussed the factors influencing the persistence of inflation effects, including the speed at which companies pass through cost increases and the stability of long-term inflation expectations.