Lorie Logan urges modestly higher rates as inflation exceeds 2%
Lorie Logan, head of the Dallas Federal Reserve, is pushing for "modestly higher" interest rates because inflation is still above the Fed's 2% goal.
She told a Houston crowd on Thursday that strong spending, big investments in AI, and rising tensions in the Middle East are keeping prices up.
Her comments show there's some debate inside the Fed ahead of its late July meeting.
Logan warns delay could hurt jobs
Logan worries that waiting too long to raise rates could mean bigger hikes later, which would hit jobs harder.
She pointed out that solid job and spending numbers suggest current policies aren't slowing things down enough.
Plus, she noted that while AI might help with prices someday, right now it's actually fueling demand and pushing costs up.
As she put it, "Better modest restriction now than severe restriction later."