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Fed's Logan signals support for interest rate hike at July meeting

Published 2023-07-06, 10:28 a/m
© Reuters

Investing.com -- Top Federal Reserve official Lorie Logan placed her support behind a further interest rate hike at the central bank's upcoming policy meeting this month, citing a need to tamp down lingering inflationary pressures.

In prepared statements at a Central Bank Research Association event at Columbia University, Logan, Federal Reserve Bank of Dallas President and voting member of the Federal Open Market Committee, said that she remained concerned that price growth would not return to the Fed's 2% target in a "sustainable and timely way."

With this concern in mind, Logan stressed that the Fed must follow through on what she described as a "signal" delivered in June that the central bank would resume its recent tightening campaign this year.

"[T]he continuing outlook for above-target inflation and a stronger-than-expected labor market calls for more-restrictive monetary policy," Logan said.

She added that she was one of the officials to support continued policy tightening at the Fed's latest meeting in June, where officials ultimately voted to keep borrowing costs steady. However, she said the decision to skip a rate increase made "sense."

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