06/12/2026
Fed Official Warns of Interest Rate Hike if Inflation Doesn’t Cool
Dallas Federal Reserve President Lorie Logan has warned that the central bank may need to increase interest rates this year to rein in inflation before it gets out of control.
“Homebuyers should not wait for a rate cut or lower inflation this summer; both are looking very unlikely."
Mortgage rates closely track the 10-year Treasury yield rather than the Fed's policy rate, meaning long-term inflation expectations are already partially baked into current rates. "What will move mortgage rates is if inflation itself gets dramatically worse in the next few months and/or if the bond market thinks the Fed is reacting too slowly."
Dallas Fed President Lorie Logan suggests that an interest rate hike may be necessary later this year to fight inflation.