Fed can be patient, ready to respond if needed: Logan

(Reuters) -With the stability of the labor market, inflation that runs somewhat above the target, and uninterrupted expectations, the Federal Reserve is watching a wide range of data to judge the response that may be needed, the head of the Federal Reserve in Dallas said on Monday.

“The monetary policy is really good for us to wait, patient and monitor data, knowing that if the risks change materially on both sides, we are in a good position to behave,” Logan said at a banking conference. “Our mission is to make sure that the increase once in the price level does not become an ongoing problem in inflation.”

Logan’s statements are frequent in many of her colleagues in the price situation who expect US president Donald Trump’s tariff for both unemployment and inflation, and the central bank may put a difficult position of choosing the battle to determine its priorities.

Political makers meet in the next FED within about two weeks, and it is widely expected to leave short -term borrowing costs in its current range 4.25 % -4.50 % as they have been since December. Financial markets do not expect to reduce prices until September, based on the pricing of the short -term interest rate contracts.

For Logan, inflation data is “first and foremost” in its features. The goal of the Federal Reserve to inflation is to change 2 % on an annual basis in the Personal Consumption Expenses Prices Index; The data released last week showed that PCE enlarged was 2.1 %.

However, most analysts feel that the effect of Trump’s aggressive tariff has not yet been reflected in the data.

Logan referred to the Fed Dallas polls that show that half of companies expect prices to be raised to consumers due to high import duties. Families and companies expect inflation to rise in the short term, as investigative studies appear.

Logan said: “The main risks of our outlook are that those higher expectations of inflation from definitions or other potential shocks extend beyond the period of those shocks that affect the economy, then the risks are that those expectations are firm.”

Logan said that the customs tariff itself and the uncertainty about national economic policies and fluctuations in the financial market may slow the economy. She said so far, she said the labor market remains in a state of balance, and the economy has been stable.

Reading comes on the health of the labor market in May on Friday, where economists expect to show work data for employers about 130,000 jobs, a decrease from 177,000 in the previous month, but the unemployment rate to stay at 4.2 %.

(Participated in the reports of Ann, who traveled; edited by Ceso Nymama)