MNI BRIEF: Fed's Logan Wants Further Inflation Improvement

Dallas Federal Reserve President Lorie Logan said on Thursday inflation has been much too high and will assess whether the central bank has made enough progress by looking for a clear change in underlying supply and demand that has caused the tight jobs market.

"The Fed has raised interest rates by 4.5 percentage points over the past year to bring the economy into better balance," she said in prepared remarks in Odessa, Texas. To assess whether the Fed has made enough progress, Logan is also looking for "further and sustained improvement" in inflation.

"Over the past six weeks, I’ve also been closely watching the effects of stresses in the banking system - both on the macroeconomy and on local communities, especially here in Texas where small and midsize banks are so important," Logan said. "Smaller banks are particularly significant in small business, rural, middle-market, and commercial real estate lending." (See: MNI INTERVIEW: US Community Banks Resilient, Trade Group Says)