Federal Reserve Bank of Dallas President Lorie Logan said on Monday that risks to the Fed's price stability mandate are balanced on both sides, although inflation remains somewhat above the 2% target. She estimated that monetary policy is well positioned to wait and be patient, although she asserted that the Fed will act if a higher risk materializes, especially if higher short-term inflation expectations become entrenched.
Logan said that the United States economy is resilient despite the recent volatility. However, she repeated that tariffs could change inflation expectations, which would be "significant." She noted that tariffs could result in both higher unemployment and higher inflation, which puts the Fed's two mandates in conflict.
