By Jessica Coacci
Dallas Fed President Lorie Logan said she is increasingly concerned about how long it will take inflation to return to the Federal Reserve's 2% target, explaining her dissent against language in the latest policy statement that suggests the next adjustment would most likely be a cut.
"The conflict in the Middle East raises the prospect of prolonged or repeated supply disruptions that could create further inflationary pressures," she said.
At Jerome Powell's last meeting as chair, three officials dissented against the central bank's latest policy statement because they thought it was too dovish. They opposed retaining the "easing bias" language in the Fed's policy statement. Beth Hammack of Cleveland and Neel Kashkari ?of Minneapolis were the other two.
Fed governor Stephen Miran, an advocate of lower rates, dissented in favor of a quarter-point cut.
Even before the war began, Logan said she believed the Fed's interest rate stance was well positioned for the risk facing the economy-signaling limited urgency to return to cutting rates.
Logan said forward guidance on the Fed's rate path, as in the recent post-meeting statement, is a key part of how the central bank steers the economy. "When the FOMC gives forward guidance about the likely course of future interest rates, as in the recent post-meeting statement, that guidance is an important policy tool," she said.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
05-01-26 1015ET
