Dallas Federal Reserve President and 2026 FOMC voting member Lorie Logan struck a hawkish tone in recent remarks, signaling that the central bank might need to raise interest rates later this year to ensure inflation returns to its 2% target.
Logan noted that the US labor market is “broadly in balance,” investment in artificial intelligence is booming, and financial conditions remain “loose.” However, she pointed out that inflation does not appear to be trending back toward the Fed’s goal. “Current monetary policy is not restraining the economy,” she stressed, adding that these circumstances suggest the current policy stance is failing to sufficiently cool economic activity or push inflation down to the target.
“I’ve grown increasingly concerned that restoring price stability, while appropriately balancing both sides of the Fed’s dual mandate, could require rate hikes later this year,” Logan said. Her comments, delivered during an economic conference, underscore the vigilance of some Fed officials regarding sticky inflation and the possibility of further tightening. The remarks were originally reported by Jinshi Data and relayed by Odaily Planet Daily.