Current rises in Treasury yields reflect market expectations of a more aggressive central bank, but Logan noted these shifts do not replace the Fed's mandate. She distinguished this from yield increases driven by rising term premiums—the extra compensation investors seek for longer-term debt—which she argued could slow the economy and potentially reduce the need for further monetary tightening.
Wednesday, October 21, 2026
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Dallas Fed's Logan Says Fed Must Raise Rates 50 Bps to Reverse Prior Cuts
US Markets19 days ago
The Federal Reserve’s 2% inflation target may remain out of reach unless monetary policy reaches a modestly restrictive threshold, Dallas Fed President Lorie Logan said. She stated that the central bank likely needs to raise the policy rate by at least 50 basis points to achieve this stability, noting that such a move, alongside September's increase, would offset three rate cuts implemented last year. Logan added that the exact level of restriction required remains uncertain and could necessitate even further hikes.
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