Lorie Logan warns of more hikes if inflation above 2%
Lorie Logan, head of the Dallas Federal Reserve, says more interest rate hikes might be on the way if inflation doesn't cool down to the Fed's 2% target.
She called the recent bump in rates just a "first step" and pointed out that even though the economy looks solid and jobs are steady, inflation could stay above 2.5% unless it does more.
Treasury yields hit 24 year highs
Not everyone at the Fed agrees on raising rates further. Some want to wait and see.
Meanwhile, US Treasury yields just hit their highest in 24 years, which usually signals expectations for growth (and maybe more rate hikes).
But Logan cautioned that some of this may be due to higher "term premiums," making borrowing costlier already.
As she put it, "I will continue to watch labor markets, prices, growth, consumption and financial conditions to evaluate whether policy is becoming restrictive."