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Fed policy 'a bit loose,' need it to be 'restrictive,' Logan says

BY Reuters | ECONOMIC | 05:05 PM EDT

June 3 (Reuters) - Federal Reserve Bank of Dallas President Lorie Logan on Wednesday said she feels monetary policy is currently "neutral or perhaps even a bit loose," in contrast with what she feels the economy needs in light of inflation that's too high.?

Inflation is heading toward 2.5%, she said, but the Fed aims to get it down to 2%. "In order to do that, we need at least mildly restrictive policy to finish the job," Logan said, in remarks which underscore her view that the Fed may need to raise interest rates.??

(Reporting by Ann Saphir, Editing by Franklin Paul)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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