Bonds & Rates
Home›Bonds & Rates›Central Banks›Dallas Fed’s Lorie Logan urges another rate hike despi…
Dallas Fed’s Lorie Logan urges another rate hike despite softer CPI
Logan said policy is not restrictive enough, adding that waiting could raise the eventual cost of restoring inflation to a 2% target.
Dallas Fed President Lorie Logan on Thursday became the most outspoken Fed official yet in favor of renewed monetary tightening, arguing for another interest rate increase. She delivered the remarks in Houston and said modestly higher rates would better balance the outlook and risks.
Logan said inflation remains well above target and is not on track to return sustainably to 2%. She also downplayed June’s softer CPI report, characterizing progress toward 2% as “more a hope than a likelihood,” and warned that current policy is not restraining the economy because labor, consumption, and financial data still indicate limited tightening effects.
She argued that delaying action could increase the eventual economic cost of restoring price stability, saying better “modest restriction now” could avoid “severe restriction later.” Logan pointed to risks that could keep inflation elevated, including renewed fighting in the Middle East that could push energy prices higher, and the ongoing boost from AI investment that is already lifting demand.
Her comments highlight widening differences within the FOMC ahead of the July 28 to 29 meeting, raising the likelihood of a more contentious policy debate even if rates end up unchanged, according to Action Forex.