Dallas Fed President Lorie Logan, speaking at a meeting in Dallas yesterday, assessed the Federal Reserve's stance regarding the rise in long-term bond yields in the United States, stating, "If long-term bond yields continue to remain at high levels, the need for interest rate hikes may decrease." Logan pointed out that the Fed's decision to keep interest rates high for a longer period than expected has contributed to the upward trend in long-term interest rates in the United States since September. Last week, the yield on 30-year US Treasury bonds surpassed 5%, reaching its highest level since 2007.
Furthermore, Logan emphasized that inflation remains high, and the labor market is robust, stating that the Fed needs to maintain restrictive financial conditions to bring inflation down to the 2% target. Logan, who has supported high interest rates since taking office as Dallas Fed President, also added that inflation remains the biggest risk to the US economy.
