Continued restrictive financial conditions will be necessary to bring down inflation, Dallas Fed President Lorie Logan said on Monday, per Reuters.

"If long-term interest rates remain elevated because of higher term premiums, there may be less need to raise the fed funds rate," Logan added. "However, to the extent that strength in the economy is behind the increase in long-term interest rates, the FOMC may need to do more."

Key quotes

"We are attentive to risks on both sides of fed's mandate, but high inflation is the most important risk."

"Progress on inflation is encouraging but it's too early to be confident it is headed to the Fed's 2% target in a sustainable, timely way."

"Labor market is still very strong, wages are still solid."

"Output, spending have been surprisingly strong; outlooks for consumer are mixed