Dallas Fed’s Logan, Vice Chair Jefferson Warn U.S. Rates May Need to Rise to Hit 2% Inflation
Dallas Fed President Lorie Logan and Federal Reserve Vice Chair Andrew Jefferson said U.S. interest rates may need to rise further if inflation does not cool convincingly back to the central bank’s 2% target. Logan called for ‘modestly higher’ borrowing costs to balance economic risks, while Jefferson warned that the Fed may need to revisit its current policy stance to maintain price stability.
The comments broaden the hawkish tone within Federal Reserve leadership as policymakers assess lingering price pressures tied to strong labor and consumption data. Jefferson noted that the current monetary policy stance is well positioned, but emphasized that the central bank is monitoring upside inflation risks closely. The remarks keep the prospect of additional borrowing cost increases in play ahead of future policy meetings.
From the sources (24 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
@kevrgordonFed’s Jefferson says policy is well positioned but rate hikes should be considered if inflation doesn’t cool soon
@businessFed’s Logan Favors Modestly Higher Rates to Lower Inflation
@firstsquawkFED VICE CHAIR JEFFERSON: LABOUR MARKET IS STABILISING; LOW-HIRE, LOW-FIRE ENVIRONMENT DRIVEN BY UNCERTAINTY PARTICULARLY OVER AI; WELCOMES MORE DYNAMISM BUT DOES NOT WANT TO SEE UNEMPLOYMENT RISE
@financialjuiceFed's Jefferson: If inflation fails to ease, revisiting policy stance may be necessary to maintain price stability
@reutersFed's Logan calls for 'modestly higher' interest rates
@firstsquawkJEFFERSON REAFFIRMED THE FED'S COMMITMENT TO RETURNING INFLATION TO ITS 2% TARGET, ADDING THAT POLICY COULD BE RECONSIDERED IF INFLATION DOES NOT RESUME COOLING SOON.
@firstsquawkJEFFERSON WARNED THAT IF INFLATION FAILS TO RESUME ITS DECLINE, THE FED MAY NEED TO RECONSIDER ITS CURRENT POLICY STANCE TO ENSURE INFLATION RETURNS TO TARGET.
@unusual_whalesFed's Logan: Inflation does not appear to be heading sustainably back to 2% on its own.