Federal Reserve Bank of Dallas Governor Lorie Logan said that the Federal Reserve must continue to raise interest rates to completely curb inflation, and hinted that rising US Treasury yields may also help cool down the economy. In a speech prepared for a Dallas Federal Reserve event on Thursday, Logan said, “I currently estimate that the target interest rate range will need to be raised by another 50 basis points or more to properly balance the prospects and risks of the dual mission goals.” Prior to joining the Federal Reserve Bank of Dallas, Logan worked in the marketing department of the Federal Reserve Bank of New York for over 20 years. She also mentioned that US Treasury yields have risen sharply in the past few weeks. She said that market sources told her that this wave of gains initially stemmed from market expectations of strong economic growth and that the Federal Reserve's neutral interest rate might be higher; however, the current model shows that term premiums are also rising. The so-called term premium refers to the additional remuneration required for investors to hold longer-term rather than shorter-day bonds.

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