Fed’s Logan: Policy Rate Needs To Rise By An Additional 50bps Or More To Return Inflation To 2%
Current Policy Is Not Restrictive; Needs To Become Modestly Restrictive - A Few More Hikes Would At Minimum Reverse Last Autumn s Cuts, Though Ultimate Rate Needed Is Uncertain - Economic Growth Is Strengthening And Labour Market Is Well Balanced - Higher Long-Term Yields Signal Expectations Of Higher Rates, But May Also Reflect Term Premiums That Reduce Need For Fed Tightening - Will Monitor Bond Yields And Assess Their Policy Implications
Current Policy Is Not Restrictive; Needs To Become Modestly Restrictive - A Few More Hikes Would At Minimum Reverse Last Autumn s Cuts, Though Ultimate Rate Needed Is Uncertain - Economic Growth Is Strengthening And Labour Market Is Well Balanced - Higher Long-Term Yields Signal Expectations Of Higher Rates, But May Also Reflect Term Premiums That Reduce Need For Fed Tightening - Will Monitor Bond Yields And Assess Their Policy Implications