Dallas Fed President Lorie Logan signaled support for higher interest rates, warning inflation remains above target and policy is not restrictive enough. She flagged risks from strong demand, AI investment and Middle East tensions, indicating growing divisions within the Federal Reserve ahead of its July meeting on the policy path.

The policymaker said this week's good inflation news wasn't good enough.

Dallas Fed President Lorie Logan signaled support for higher interest rates, warning inflation remains above target and policy is not restrictive enough. She flagged risks from…