Federal Reserve Bank of Dallas President Lorie Logan said in a speech on Monday that the recent inflation developments are "encouraging" but warned that it is still too soon to "say with confidence that inflation is headed to 2 percent in a sustainable and timely way." She also noted that the labor market "remains very strong overall" and that wage growth remains solid.
"Consumption is robust, business investment is solid, the drag from the housing sector has declined, and recession fears have faded," Logan said. However, she stressed that inflation remains "the most important risk" and that restrictive financial conditions will be needed to bring inflation down.
