Fed's Logan sees need to keep interest rates steady for longer to cool inflation

According to Federal Reserve Bank of Dallas President Laurie Logan, US central bank officials will likely have to keep interest rates steady for a while to ease inflationary pressures. However, she allows for the possibility of rate cuts when the pace of price growth in the country slows and the labor market softens. 

But for now, she emphasizes, there is a need for tight monetary policy.

Federal Reserve officials have been keeping borrowing costs unchanged this year, taking a wait-and-see approach to assessing the impact of new import tariffs on inflation and the economy. As Bloomberg notes, there is now no consensus among central bank representatives on further course of monetary policy for the rest of the year.

In June, the median estimate of 19 Fed officials projected two interest rate cuts this year. At the same time, nine others predicted only one cut or none.

Meanwhile, US core inflation data released on Tuesday showed price growth in June below forecasts for the fifth consecutive month.