MNI BRIEF: Logan Says Slower Fed Tightening Can Be Helpful

Dallas Fed President Lorie Logan Tuesday said a slower pace of monetary tightening shouldn't signal any less commitment to achieving the 2% inflation goal and can be helpful to avoid unnecessary financial risks.

"When conditions are uncertain, you need to travel more slowly," she said while moderating a panel discussion at an Atlanta Fed financial markets conference. "Gradual policy adjustments can be helpful. Financial conditions can sometimes deteriorate nonlinearly, doing damage to the broader economy, but the risk of a nonlinear reaction can be mitigated by raising interest rates in smaller less frequent steps while using other dimensions of monetary policy to maintain financial conditions."

Logan did not directly comment on the path of policy for the June FOMC meeting.