Fed’s Dallas President Lorie Logan Advocates Rate Increase Ahead of July Meeting
On 16 July 2026, Dallas Federal Reserve President Lorie Logan became the first policymaker under Fed Chairman Kevin Warsh to publicly call for an interest‑rate increase, potentially setting up a dissent at the Federal Open Market Committee (FOMC) meeting scheduled for 28‑29 July. In prepared remarks delivered in Houston, Logan stated that “inflation has been too high, for too long, and does not appear to be on track all the way back to 2%,” and she believes that “modestly higher interest rates would better balance the outlook and risks for the FOMC’s maximum employment and price stability goals.”
Logan argued that recent labor, consumption, and financial data indicate monetary policy is not restraining the economy, warning that if higher inflation becomes entrenched the Fed would need “sharper rate increases to bring it back to target, with a larger cost for the labor market.” She described the path back to the Fed’s 2% inflation target as “tenuous,” adding that it is “more a hope than a likelihood.”
While acknowledging that consumer‑price inflation moderated slightly in June, Logan pointed to several mounting inflation risks: renewed hostilities in the Middle East that could reverse recent fuel‑price relief, and the potential for AI‑driven investment to generate broader price pressures. She noted that AI and other technologies may eventually boost productivity and lower prices, but the timing and scale remain uncertain, and current demand effects are already pushing prices higher when demand outstrips supply.
The current policy rate remains in the 3.50%‑3.75% range. At the June FOMC meeting, policymakers unanimously supported keeping the rate unchanged, although a minority saw a case for raising rates. Warsh assumed the Fed chairmanship in May, and his first meeting in June maintained the status quo.