Fed official Logan said policymakers may need to raise rates later this year to
return inflation to the 2% target. She described the U.S. labor market as
broadly in balance, said AI-related investment is booming and financial
conditions remain loose. Current inflation trends do not appear to be moving
toward 2%, suggesting policy is not yet restrictive; she said she is
increasingly concerned a rate increase later this year may be necessary to fully
restore price stability while balancing the Fed’s dual mandate.
