The Federal Reserve might not be done tightening. Dallas Fed President Lorie Logan said on June 3 that the central bank may need to raise interest rates later this year, warning that a broad range of inflation indicators has “heated up” and that the current policy stance isn’t restraining prices enough.
What Logan actually said
Logan’s core argument is straightforward: the Fed’s current target range of 3.5% to 3.75% is insufficiently restrictive given the recent resurgence in inflation data. Rate hikes, she said, “might be required later this year” to get prices back on track toward the Fed’s 2% target.
On April 29, she dissented against FOMC language that suggested the next policy move would be a rate cut. Two days later, on May 1, she publicly acknowledged that the economic outlook leaves room for the next action to be “either an increase or a cut.”
Throughout late 2025, Logan had already been flagging that Fed policy was only “modestly restrictive” amid persistent inflation. Her June 3 comments represent the logical escalation of that view, not a sudden pivot.
