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

ON 17 JULY, THE FED LOGAN STATED THAT THE FED SHOULD RAISE INTEREST RATES TO DEAL WITH HIGH INFLATION-- THIS STATEMENT SUGGESTS THAT SHE MAY BE PREPARED TO OPPOSE THE DECISION TO MAINTAIN INTEREST RATES AT THE SAME RATE LATER THIS MONTH. LOGAN STATED 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 PATH. “JUNE CPI DATA DO INDICATE THAT INFLATION IS LIKELY TO RETURN TO TARGET LEVELS AND THAT THE OUTLOOK IS MORE OPTIMISTIC,” LOGAN SAYS, “BUT THE PATH REMAINS FRAGILE. I NOW BELIEVE THAT A MODEST INCREASE IN INTEREST RATES WOULD CONTRIBUTE TO A BETTER BALANCE BETWEEN PROSPECTS AND RISKS.”