Logan Advocates for Slight Increase in Benchmark Interest Rate

Lorie Logan, President of the Dallas Federal Reserve Bank, stated that it is difficult for inflation to return to the 2% target in a stable manner and that the benchmark interest rate needs to be raised further. At an event in Houston on the 16th, he said, "Raising the benchmark interest rate slightly more is a way to manage the risks between price stability and full employment in a balanced manner." President Logan diagnosed that it is difficult to lower prices to the target level at the current interest rate level, emphasizing that "if inflation does not decrease to 2% on its own, monetary tightening is necessary." He expressed a cautious stance regarding recent consumer price indicators, adding that "one month of price stability is not enough." Within the Federal Reserve, concerns about inflation continue to be voiced, and in the June economic outlook, half of the FOMC members anticipated at least one rate hike this year. While the market sees a high possibility of keeping rates steady at the July meeting, the potential for further tightening remains open.

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