Dallas Fed's Logan backs slightly higher interest rates

Dallas Federal Reserve President Lorie Logan said Thursday that interest rates may need to move slightly higher to help bring inflation back to the central bank’s 2% target. In prepared remarks delivered in Houston, Logan said recent declines in consumer and wholesale prices were encouraging but not enough to show that inflation is returning to target on a sustainable basis. She argued that persistent abovetarget inflation continues to strain household budgets. Logan said policy should remain restrictive enough to push inflation lower, warning that if inflation becomes entrenched, the Fed could face the need for sharper rate increases later. She did not say she was calling for a hike at this month’s meeting or specify how much rates should rise.