Logan Says Fed May Need to Raise Interest Rates This Year (2)

Federal Reserve Bank of Dallas President Lorie Logan said officials may need to raise interest rates later this year to bring inflation back to the US central bank’s 2% target.

Logan said the US labor market is “broadly balanced,” investment in artificial intelligence is booming and financial conditions are “accommodative.” But, she added, inflation doesn’t appear headed back to the Fed’s 2% goal.

“These conditions indicate that monetary policy is not restraining the economy,” Logan said Wednesday at an event in El Paso, Texas. “I am increasingly concerned that higher interest rates could be necessary later this year to fully ...