Lorie Logan on interest rates
From A conversation with Dallas Fed President Lorie Logan · · Dallas Fed
“These conditions indicate to me that monetary policy is not restraining the economy. I'm increasingly concerned that higher interest rates could be necessary later this year to fully restore price stability and appropriately balance both sides of the Fed's dual mandate.”
On , Lorie Logan, President and CEO at Federal Reserve Bank of Dallas, spoke about interest rates during A conversation with Dallas Fed President Lorie Logan on Dallas Fed.
About Lorie Logan
In recent appearances, Lorie Logan, President and CEO of the Federal Reserve Bank of Dallas, expressed concern that inflation remains too high and is taking longer than expected to return to the Federal Open Market Committee’s (FOMC) 2% target. At a May 2026 event at the University of Texas at El Paso, Logan stated that underlying inflation appears to be closer to 2.5% or the mid-2% range, and that monetary policy may be “neutral or perhaps even a bit loose” rather than restrictive. She noted that the labor market is “stable” and “balanced,” with an unemployment rate of 4.3%, and that wage growth is occurring in sectors like construction due to data center development. Logan also said she is “increasingly concerned that higher interest rates could be necessary later this year to fully restore price stability.” At the Eleventh District Banking Conference in April 2026, Logan reiterated that inflation is “trending in the wrong direction” with “further upside risks,” and that she supported the FOMC’s decision to keep interest rates steady. She emphasized the importance of restoring price stability, stating that “stable inflation is the bedrock for a strong economy.” Logan also discussed the banking system, advocating for reducing banks’ need for reserves by shifting the demand curve inward rather than returning to scarce reserves, noting that U.S. dollar reserves are the “safest, most liquid asset in the world.” She highlighted the need for transparency and oversight in fast-growing areas of capital markets, such as private credit, due to limited transparency and potential vulnerabilities.