Fed's Logan: rate-setting should take account of broad financial conditions

Feb 6 (Reuters) - Dallas Federal Reserve Bank President Lorie Logan said on Thursday it is important to take into account broad financial conditions, including longer-term borrowing costs the Fed does not control, when setting monetary policy.

The 10-year Treasury yield and other longer-term borrowing rates have generally risen over the last six months, even as the Fed cut short-term rates, though more recently yields have come down a bit.

Logan earlier said she feels the Fed may need to keep its policy rate where it is even if inflation nears the Fed's 2% goal, as long as the labor market remains strong, because that combination suggests monetary policy is not meaningfully restrictive.