Fed: Fed’s policy position is well positioned

During her comments on Thursday, the president of the Federal Reserve of Dallas, Lorie Logan, warned that tariffs that exceed expectations almost with certainty would cause an increase in both unemployment and inflation.

Outstanding comments

• It is important to prevent any price increase related to tariffs foster more persistent inflation.
• If the highest inflation expectations are consolidated, the path to price stability is longer and economic scars are deeper.
• For now, Fed’s policy position is well positioned.
• Financial markets have been volatile.
• Higher tariffs than expected most likely would increase both unemployment and inflation.
• A sustained outbreak of inflation could lead to an increase in inflation expectations.
• The persistence of inflation will depend on the speed with which companies transfer cost increases and if long -term inflation expectations remain well anchored.