Fed's Logan says her base case calls for holding rates steady a while longer 

Dallas Federal Reserve Bank President Lorie Logan spoke at a World Affairs Council event in San Antonio on Tuesday. Logan said that the Fed will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the US President Donald Trump administration's tariffs. 

Key quotes

Base case is that monetary policy needs to hold tight for a while longer to bring inflation down.
Want to see low inflation continue longer to be convinced.
June CPI data suggests PCE inflation, which the Fed targets at 2%, will rise.
Also possible that softer inflation, weakening labor market will call for lower rates 'fairly soon.'
Labor market remains solid, fiscal policy set to be a tailwind for growth.
Under base case can sustain maximum employment even with modestly restrictive policy.
If Fed misjudges and doesn't cut soon enough, it could cut rates further to get employment back on track.
Tariff increases appear likely to create additional inflationary pressure for some time.
If Fed cuts rates too soon, risks deeper economic scars on longer road to price stability.

Market reaction

At the time of writing, the US Dollar Index (DXY) is trading 0.03% lower on the day to trade at 98.60.