Fed's Logan: All of us have been surprised by resilience of US economy

<ul><li>Inflation remains too high</li><li>The core question is if financial conditions today are sufficiently restrictive</li><li>Labor market is still too tight</li><li>Still looks like trending towards 3% inflation</li><li>We'll need to see tight financial conditions to bring inflation to 2%</li><li>My expectation is we'll see growth slow but we've been wrong before</li><li>Key question on long-term rates is what was driving it</li><li>If it was on the back of strong economic growth, FOMC would have to deliver on expectations</li><li>If rise in long end driving by term premium, it could do some of the Fed's work</li><li>Will watch to see if retracement of long-rates continues</li></ul><p>She's sounding more hawkish here.</p>

This article was written by Adam Button at www.forexlive.com.