The U.S. central bank will need to keep gradually raising interest rates to beat inflation, Dallas Federal Reserve President Lorie Logan said on Tuesday, putting investors on notice that borrowing costs may ultimately need to go higher than is now widely expected.
“We must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions,” Logan said in remarks prepared for delivery to students at Prairie View A&M University in Texas. “And even after we have enough evidence that we don’t need to raise rates at some future meeting, we'll need to remain flexible and tighten further if changes in the economic outlook or financial conditions call for it.”
