Federal Reserve Logan: Interest should be raised to deal with inflation

THE STATEMENT BY FEDERAL RESERVE OFFICER LOGAN THAT THE FED SHOULD RAISE INTEREST RATES TO DEAL WITH HIGH INFLATION SUGGESTS THAT SHE MIGHT BE PREPARED TO OPPOSE THE DECISION TO KEEP INTEREST RATES UNCHANGED LATER THIS MONTH. LOGAN POINTED OUT THAT THE JUNE INFLATION DATA PUBLISHED ON TUESDAY INDICATED THAT PRICE INCREASES TENDED TO SLOW, BUT WERE NOT ENOUGH TO CONVINCE HER THAT INFLATION HAD RETURNED TO THE FED ' S 2 PER CENT TARGET. SHE INDICATED THAT THE JUNE CPI DATA DID INDICATE THAT INFLATION WAS LIKELY TO RETURN TO TARGET LEVELS AND THAT THE OUTLOOK WAS MORE OPTIMISTIC, BUT THAT THE PATH REMAINED FRAGILE. SHE BELIEVED THAT A MODEST INCREASE IN INTEREST RATES WOULD HELP TO BETTER BALANCE PROSPECTS AND RISKS。