Federal Reserve Bank of Dallas President Lorie Logan advocated for a modest increase in interest rates, asserting that inflation is not on a sustainable path to the Federal Reserve's 2% target. She believes that maintaining current restrictive monetary policy alone may not be sufficient to bring inflation down to the desired level.

Logan emphasized the need for the Fed to be prepared to do more if necessary, suggesting that a slightly higher interest rate could be beneficial. She pointed to recent economic data that indicates persistent inflationary pressures, despite some signs of cooling in certain sectors. The central bank has been working to curb inflation that surged to multi-decade highs in 2022.

Her remarks come as policymakers grapple with the delicate balance of tightening monetary policy enough to control inflation without triggering a recession. Logan noted that the Fed has made progress, but more work is needed to ensure price stability. The path forward, she indicated, involves careful consideration of incoming economic indicators and a willingness to adjust policy as needed to achieve the 2% inflation goal.