Fed's Logan: Not yet convinced we are moving to 2% inflation

Federal Reserve Bank of Dallas President Lorie Logan stated on Friday that there has been some “welcome progress” in tackling inflation but that it’s still too high.

Key quotes

“Has seen welcome progress on inflation but it's still too high.”

“Not yet convinced we are moving to 2% inflation.”

“Economy continues to outperform, labor markets still tight.”

“Important to have restrictive financial conditions broadly speaking.”

“Fed has some time to watch economy, markets before deciding on monetary policy.”

“Fed has been unified in restoring price stability.”

“Some part of bond yield rise is tied to term premiums.”

“Some part of bond yield rise is also tied to strength of economic data.”

“Rise in bond yields has been pretty orderly.”

“Bond markets are functioning, but still watching for trouble”
 

Market reaction

Following the above comments, the US dollar Index (DXY) is up 0.04% on the day at 106.26