Logan warned that anchored inflation expectations cannot be taken for granted, adding the U.S. may need more labor market slack to return inflation to 2%.
She said underlying price pressures excluding tariffs could climb to 2.4% on non-housing services, while noting financial conditions are now a tailwind and evidence that policy is only modestly restrictive.
Logan stressed plans to exercise caution in further rate cuts but did not comment on how much more the Fed can ease before reaching neutral, while also pointing to resilient consumption and business investment.
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