Dallas Fed’s Logan Calls for Modestly Higher Interest Rates, Citing Insufficient CPI Progress and Inflationary AI Spending
Dallas Fed President Lorie Logan argued for modestly higher interest rates, stating that a single month of lower CPI inflation is insufficient to confirm progress toward the inflation target. She noted that current economic data indicates monetary policy is no longer restraining the economy and that inflation does not appear to be returning sustainably to the 2% goal without additional policy restriction.
Logan highlighted that downside risks to employment have faded while inflation risks remain tilted to the upside, emphasizing that robust investment demand for artificial intelligence is driving near-term price pressures. Labor, consumption, and financial indicators currently point to an economy operating at a pace that warrants tighter policy to balance growth and price stability outlooks.
From the sources (16 posts)
@tradfi*FED'S LOGAN CALLS FOR 'MODESTLY HIGHER' POLICY RATE
@financialjuice🔴 Fed's Logan: Modestly higher interest rates would better balance outlook, risks.
@financialjuiceFed's Logan: One month of lower CPI inflation is not enough.
@financialjuiceFed's Logan: Some policy restriction is needed to help get it there.
@financialjuiceFed's Logan: Inflation does not appear to be heading sustainably back to 2% on its own.
@financialjuiceFed's Logan: AI investment surge could trigger nonlinear price increases.
@financialjuiceFed's Logan: Downside risks to employment have faded, inflation risks are mainly to the upside.
@financialjuiceFed's Logan: Labor, consumption and financial data indicate that monetary policy is not restraining the economy.
@cryptoroverBREAKING: 🇺🇸 FED official Logan says that ''one month of lower CPI inflation is not enough.'' ''Higher interest rates would better balance outlook.'' FED officials are openly calling for rate hikes.
@cnbcDallas Fed President Logan calls for 'modestly' higher interest rates
@firstsquawkFED'S LOGAN: ONE MONTH OF LOWER CPI INFLATION IS INSUFFICIENT; MODESTLY HIGHER INTEREST RATES WOULD BETTER BALANCE OUTLOOK AND RISKS
@firstsquawkFED'S LOGAN: INFLATION DOES NOT APPEAR TO BE HEADING SUSTAINABLY BACK TO 2% ON ITS OWN; SOME POLICY RESTRICTION NEEDED TO ACHIEVE TARGET
@firstsquawkFED'S LOGAN: LABOUR, CONSUMPTION AND FINANCIAL DATA INDICATE MONETARY POLICY IS NOT RESTRAINING THE ECONOMY
@firstsquawkFED'S LOGAN SAID DATA CENTER-DRIVEN ELECTRICITY DEMAND IS LIKELY TO ADD MODEST INFLATIONARY PRESSURES, WHILE HIGH OIL PRICES MAY NOT LEAD TO A SIGNIFICANT INCREASE IN U.S. PRODUCTION DUE TO INFRASTRUCTURE CONSTRAINTS SUCH AS LIMITED GAS TAK
@financialjuiceFed's Logan: Right now, investment demand for AI is big, real, and has near-term inflationary effects.
@firstsquawkFED'S LOGAN: CONCERNED ABOUT LABOUR FORCE IN TEXAS DUE TO IMMIGRATION RESTRICTIONS; AI INVESTMENT DEMAND IS BIG, REAL AND HAS NEAR-TERM INFLATIONARY EFFECTS; VERY OPTIMISTIC ON LONG-TERM PRODUCTIVITY GAINS FROM AI