Dallas Fed President Lorie Logan stood up in Houston on July 16 and said what a lot of traders were hoping they wouldn’t hear: interest rates need to go higher.
Logan argued that the Federal Reserve’s current target range of 3.5%-3.75% isn’t restrictive enough to bring inflation back to the 2% goal.
What Logan actually said
Logan made a pointed case that the return to 2% inflation remains “tenuous,” suggesting the current policy stance is providing less friction against price increases than policymakers assumed.
She warned that failing to act against persistent inflation now could force the Fed into much steeper rate hikes later.
