By Jessica Coacci
Dallas Fed President Lorie Logan said she is "cautiously optimistic" on interest rates and acknowledged there may be more uncertainty facing businesses-including the Supreme Court tariff ruling Friday.
Speaking at the Annual Bank Regulation Research Conference in New York City, Logan said tariffs are still working their way through the system, adding that she supported a hold for interest rates at the Federal Open Market Committee meeting in January.
In a 6-3 opinion, the Supreme Court barred President Trump from using a key law meant for national emergencies, the International Emergency Economic Powers Act, or Ieepa, to levy global tariffs without Congress's approval. The court did not provide guidance on whether or how those tariffs would be refunded.
When discussing what potential inflationary pressures could come from any tariff-related refunds, Logan said the Fed has to think about the total magnitude of payments that flow back into the economy, what other policies could be put in place in response, and how financial conditions respond to them.
"All of those things could affect the economy or financial conditions more broadly so it's something we'll be paying attention to, but I don't have any specific perspective on what direction that could be at the moment," she told Wall Street Journal.
In a speech delivered Feb. 10, Logan suggested one of the reasons inflation progress could be slower this year is because tariffs still need to work their way into prices for consumers. Logan previously said it will be important to keep any tariff-related price increases from fostering more persistent inflation.
Under the system that rotates regional bank presidents to vote for monetary policy, Logan is one of the five members voting on monetary policy in 2026. Rate cuts last year reduced the Fed funds rate to a range of 3.5% to 3.75%.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
February 20, 2026 14:29 ET (19:29 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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