Posted on 07/16/2026 11:10:26 AM PDT by Miami Rebel
Dallas Federal Reserve President Lorie Logan, asserting that this week’s good inflation news wasn’t good enough, called Thursday for “modestly” higher interest rates to win a battle the central bank has been losing for the past five years.
A voting member this year on the rate-setting Federal Open Market Committee, Logan insisted that inflation is still a major problem for U.S. households that demands action from policymakers. While other Fed officials have expressed a preference for higher rates if inflation metrics don’t improve, Logan’s is the most specific call for a hike.
“I currently believe modestly higher interest rates would better balance the outlook and risks for the FOMC’s dual mandate goals,” Logan said in prepared remarks for a speech in Houston. “Every month of above-target inflation has compounded the strain on Americans’ budgets.”
Earlier in the week, the Bureau of Labor Statistics reported some progress on that front: Consumer prices for June dropped 0.4%, the biggest monthly decline since April 2020, while wholesale prices slipped 0.3%. Both gauges benefited from slumping oil prices, though costs in several other key categories, most notably housing, also softened.
Still, Logan said there’s more work to do for the Fed to meet its 2% inflation goal. Despite the monthly decline, consumer prices rose 3.5% from a year ago, while wholesale costs increased 5.5%. Inflation has been above the central bank’s target since early 2021.
“One month of relief is not enough. It is time to finish the job of restoring price stability,” she said. “In monetary policy as in hockey, you have to skate where the puck is going. Unfortunately, inflation does not appear to be headed sustainably back all the way to 2 percent.”
Markets already expect the FOMC to raise its key overnight borrowing rate by a quarter percentage point later this year — possibly as soon as September, but more likely October, according to the CME Group’s FedWatch tracker of fed funds futures pricing.
The committee next meets July 28-29, with traders pricing in just 12.3% odds of a hike.
Logan pointed to a number of widely cited gauges as well as alternative measures such as core prices less housing to show that inflation is mired well ahead of the Fed’s target even with the recent slide in energy prices and waning tariff impacts.
“If inflation is not heading all the way to 2 percent on its own, then at least some policy restriction is needed to help get it there,” she said. “If higher inflation becomes entrenched, we’d need sharper rate increases to bring it back to target, with a larger cost for the labor market. Better modest restriction now than severe restriction later.”
Logan did not specifically state that she would push for an increase at this month’s meeting or quantify how much higher she thinks rates need to go.
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A .25 hike may work.
Where was she when inflation was 9%? Where was she then???
So you can be a Fed chair and still be an idiot. It is all about oil and that situation is working its way out daily.
These types are so “we are in control”……..morons. The market will fix what they F up.
Do your research.
This time I did it for you:
She called for higher rates and aggressive tightening when she took office in 2022.
They only control one rate ... The rest are set by market participants ...
Right.
And mortgage rates just jumped to their highest level in a year.
Trying to tank the economy ahead of Fall 2026 elections I see.
Incorrect.
Restricting the supply of oil, as the war with Iran has done, results in increasing prices for oil, but it doesn't create anymore money to bid up all prices. More money spent at the pump means people have less money to spend at the store, or to save.
Two trillion dollars federal deficits result in increasing reserves on which financial institutions can pyramid loans from newly created money in our fiat financial system. This creation of new money (which happens on the back on federal deficits) is what inflates the money supply, and results in a general increase in prices.
By raising interest rates the Federal Reserve hopes to curtail lending and reduce the creation of new money that increases all prices.
A .25 hike may work.
********************
“I’m In.”
The last thing we need at this time, is a return to the cheap money borrowing era.
Governments and corporations must choose their borrowed expenditures more wisely in the future.
Exactly!
I have not been to town in a month. I’m seeing recession around here.
But you don’t understand.
It’s not about a restriction of oil supply.
It’s about taking control of oil away from the global crime syndicate, which include the central banking system.
How do you see that happening?
It’s already been done.
Ok, how did that happen?
Appointed by Joe Biden in 2022.
Nope!
My goof.
Federal Reserve Bank Presidents are appointed by a Federal Reserve Committee.
.
As I already mentioned, she joined the Fed in 2022, so obviously a Biden appointment.
As I also posted, she favored rate hikes and tightening from the day she started.
So your “Appointed by Joe Biden in 2022” is utterly meaningless and irrelevant.
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