According to Dallas Federal Reserve President Lorie Logan, if tariffs end up being higher than anticipated, it is very likely to lead to increased unemployment and inflation. Logan emphasized the importance of preventing tariff-related price hikes from causing lasting inflation in order to effectively achieve the Fed's dual mandate goals. Despite the recent decision to temporarily reduce tariffs by U.S. President Donald Trump, Logan pointed out the volatility in financial markets as they react to trade and other policies of the administration. She highlighted that the impact of new tariffs on consumer prices may not be fully reflected in recent data, indicating that it is crucial to monitor inflation expectations closely and prevent them from becoming ingrained. Logan stressed the significance of quickly addressing cost increases by companies and maintaining stable inflation expectations to avoid prolonged economic repercussions. If inflation persists, it could lead to a cycle of rising prices that would have negative consequences on households and businesses.