Lates News

2026 FOMC voting member, Dallas Fed President Logan delivered remarks: "The Fed's policy stance has been off track; the Fed should raise rates, with a target of at least 50 basis points. And at least several more rate hikes are needed to offset last autumn's rate cuts. Without higher rates, inflation cannot reach the Fed's 2% target. The Fed needs to keep rates at a moderately restrictive level, but that level is still uncertain, so further rate hikes may be needed in the future." Regarding the recent rise in bond yields, Logan said a distinction needs to be made: "If the rise in U.S. Treasury yields reflects the market's expectation that the Fed will adopt more aggressive policy, then such an increase cannot do our job for us. But if the rise in yields stems from the term premium, that is, the extra compensation investors demand for holding long-term debt, then such a change could slow the economy, thereby reducing the need to tighten monetary policy."