U.S. Economic Policy Bets that Are Disregarding History

Dallas Fed's Lorie Logan: "My base case is that we'll need to keep interest rates modestly restrictive for some time" But "it's also possible that some combination of softer inflation and a weakening labor market will call for lower rates fairly soon." pic.twitter.com/KEBbeLEEK1 Logan: Opening remarks for moderated conversation at the World Affairs Council of San Antonio Thank you, Armen [Babajanian]. Thank you all for having me. I’d like to begin by offering my deepest condolences to all those who lost loved ones in the catastrophic flooding in the Texas Hill Country earlier this month. The loss of life is heartbreaking—especially, for me as a parent, the deaths of so many children. I take inspiration, though, from the heroism of first responders and residents who stepped up to help and from how communities across the area have rallied to support our neighbors. These actions show the true character of Texas. It’s a pleasure to visit the World Affairs Council of San Antonio this evening. In cities across the United States, World Affairs Councils promote engagement with global issues and deep community connections. This work is so important. The Dallas Fed frequently collaborates on events with World Affairs Councils in our region. Just last week, we partnered with the council in Dallas–Fort Worth to host a conversation with Federal Reserve Board Governor Chris Waller. I’m so glad to be with you here tonight, and I hope I’ll have many opportunities to return. I’m grateful to have many special guests in our audience, including current and former board members of the Dallas Fed. It means so much to have strong community partners like our board members who represent South Texas and who work with our branch here in San Antonio. I’m honored to share the stage this evening with our distinguished moderator, Speaker [Joe] Straus. Before we sit down to talk, I would like to share some initial remarks. As always, these are my views and not necessarily those of others in the Federal Reserve System. The Dallas Fed is one of the 12 reserve banks that, along with the Board of Governors in Washington, make up the Federal Reserve System. Relative to other public institutions, the Fed has two distinctive characteristics that are crucial to how we serve you. The Fed is not one centralized organization but rather a federated system with deep local roots. And in our monetary policy responsibilities, the Fed operates independently while remaining accountable to the public. Our network of operations across the country provides insights into communities’ unique economic circumstances. In the United States’ wonderfully varied economy, those perspectives help us make the best decisions to serve the country as a whole.