The U.S. central bank 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 Trump administration's tariffs,

But Logan, who has been cautious about inflation during her three-year tenure as Dallas Fed chief, also opened the door to a scenario in which the central bank might have to cut rates earlier.

Logan said that consumer price index inflation data released earlier on Tuesday pointed to a likely increase in personal consumption expenditures data for June. The latter is the Fed’s preferred gauge of inflation, and has remained consistently above the central bank’s 2% annual target.