Logan urges higher rates as inflation misses Fed’s 2% target

But with the personal consumption expenditures (PCE) price index running at 4.1% for the 12 months through May and consumer prices still up 3.5% year-over-year in June, Logan said the central bank has unfinished business.

“One month of relief is not enough,” she said. “It is time to finish the job of restoring price stability.”

Inflation signal remains muddled

Logan cited a range of measures to support her case. The Dallas Fed’s Trimmed Mean PCE inflation rate, which filters out the most volatile monthly price swings, stood at 2.4% for the 12 months through May.

Core PCE, which strips out food and energy, held at 3.4% and had climbed four-tenths of a percentage point since December, she noted.

Non-housing core services inflation has made no material progress in two years.