financetom
Economy
financetom
/
Economy
/
Fed's Logan says a rate hike may be needed to beat inflation
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Logan says a rate hike may be needed to beat inflation
Jun 3, 2026 1:32 PM

June 3 (Reuters) - Dallas Federal Reserve President Lorie Logan on Wednesday said signs of robust economic growth and corporate earnings "going gangbusters" are helping to make her worried that the Fed may need to raise interest rates this year to get inflation back down to its 2% target. 

The hawkish remarks come just two weeks before Kevin Warsh chairs his first Fed policymaking meeting amid rising inflation pressures and a growing sense among his new colleagues that those pressures may not abate unless the central bank does more to tamp them down. 

Financial conditions, Logan said on Wednesday, are accommodative as AI investment continues to boom and to fuel demand while not yet delivering the possibility of disinflation through productivity gains. Warsh for his part has embraced the idea that AI is a disinflationary force.

Consumer spending is strong, Logan said, despite higher energy prices weighing particularly heavily on lower-income households. 

"These conditions indicate that monetary policy is not restraining the economy," Logan said in remarks prepared for delivery in El Paso, Texas. 

Meanwhile inflation is on the increase, pushed up not just by last year's tariff increases and this year's oil price increase from the Iran war, but by other factors as well, she said. 

Looking at a range of measures of underlying inflation, she said, inflation appears to be trending toward the mid 2's rather than all the way back to the Fed's 2% goal. 

"I am 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," Logan said. 

Logan was one of three Fed policymakers at the Fed's last meeting who dissented, arguing that the Fed ought to signal that a rate hike, and not just a rate cut, could be the Fed's next step.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Trump's Tariffs Remain Fed's Biggest Risks To Rate Cuts, Minutes Say
Trump's Tariffs Remain Fed's Biggest Risks To Rate Cuts, Minutes Say
Oct 8, 2025
President Donald Trump's trade tariffs continue to weigh on the outlook for growth and inflation, raising concerns over how long the Federal Reserve can stick with its planned cycle of interest rate cuts. While the central bank moved forward with a 25-basis-point cut at the September meeting, the internal debate revealed that tariff-driven price pressures remain a key obstacle to...
Trump's Tariffs Could Spark US Factory Boom, Says 'The Big Short' Investor Steve Eisman: 'It's A Big Positive' In The Long Run
Trump's Tariffs Could Spark US Factory Boom, Says 'The Big Short' Investor Steve Eisman: 'It's A Big Positive' In The Long Run
Oct 8, 2025
Investor and podcast host Steve Eisman said that while the tariffs imposed by President Donald Trump could weigh on the economy in the near term, they could set the stage for a U.S. industrial resurgence. ‘A Big Positive’ In The Long Run Speaking on the tariffs and their impact on the U.S. economy during an interview on the New Money...
Factbox-Who is still working and who has been furloughed in the US government shutdown?
Factbox-Who is still working and who has been furloughed in the US government shutdown?
Oct 8, 2025
WASHINGTON (Reuters) -Hundreds of thousands of U.S. federal workers have been ordered not to report to work, while others have been told to stay on the job during the U.S. government shutdown, which started on October 1. Here is an overview of who has been furloughed at major government agencies, based on their shutdown plans. DEFENSE DEPARTMENT The 2 million...
Bitcoin Crash Off the Table as Four-Year Cycle is Dead: Arthur Hayes
Bitcoin Crash Off the Table as Four-Year Cycle is Dead: Arthur Hayes
Oct 9, 2025
Bitcoin (BTC) is unlikely to enter a bear market in the coming months as supportive monetary conditions are expected to prevail, effectively rendering the traditional four-year halving cycle obsolete, according to Arthur Hayes, chief investment officer and co-founder of Maelstrom. In an essay titled Long Live the King! published Thursday, Arthur Hayes argued that the primary catalyst behind previous bitcoin...
Copyright 2023-2026 - www.financetom.com All Rights Reserved