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Fed’s Logan Calls for ‘Modestly Higher’ Interest Rates
Logan said one month of easing is not enough and warned that inflation remains above the Fed’s 2% target.
- On Thursday, Dallas Federal Reserve President Lorie Logan became the first colleague of Fed Chairman Kevin Warsh to publicly call for "modestly" higher interest rates, arguing inflation remains too far above the central bank's 2% target.
- Asserting that recent inflation data offers only temporary relief, Logan argued the central bank must finish restoring price stability, noting "one month of relief is not enough" to reverse five years of losses in this battle.
- Logan pointed to solid labor market conditions and upside inflation risks, including Middle East hostilities and AI-driven investment demand, saying "monetary policy is not restraining the economy" as demand outstrips supply.
- Her call lays groundwork for a potential dissent at the Federal Open Market Committee's July 28-29 meeting, though markets currently assign just a 12.3% probability of a rate increase at that gathering.
- Investors anticipate the FOMC may raise its key overnight borrowing rate by a quarter percentage point later this year, with CME Group data suggesting September or October as the more likely windows for action.
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The president of the Dallas district of the Federal Reserve (Fed, the US central bank), Lorie Logan, once again defended a moderately more restrictive policy, arguing that higher interest rates would better balance the prospects and risks for both sides of the US central bank's mandate. Logan, one of the Fed's most conservative (hawkish) bias leaders, assessed that American inflation does not seem to be moving sustainably towards the 2% target, …
·Rio de Janeiro, Brazil
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Coverage Details
Total News Sources20
Leaning Left2Leaning Right4Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 18%
C 46%
R 36%
Factuality
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