Fed's Logan calls for 'modestly higher' interest rates

Dallas Fed President Lorie Logan has publicly called for modestly higher interest rates, citing inflation that remains too high and is not convincingly on track back to the 2% target. She warned that if inflation becomes entrenched, sharper rate hikes would be needed later with larger labor market costs, setting up a possible dissent at the July 28-29 FOMC meeting. The current US policy rate stands at 3.50 percent to 3.75 percent, and hawkish Fed signals typically weigh on emerging market equities and currencies like the rupee through tighter global financial conditions and FII outflows.