Overview
- Dallas Fed President Lorie Logan told audiences on June 5, 2026 that national wage growth is not the current driver of U.S. inflation.
- She attributed much of the recent rise in headline inflation to energy-price pressure that has been amplified by geopolitical tensions in the Middle East.
- Logan warned that the near-term surge in AI investment and the resulting electricity demand for data centers represent a tangible source of inflationary pressure.
- She said recent U.S. oil export gains reflect inventory drawdowns rather than new production and cautioned that physical constraints, such as gas takeaway capacity, could limit a supply response.
- Logan signaled the Fed could raise rates further if these supply-side pressures keep inflation high and said the central bank’s meeting process remains data-driven under Chair Kevin Warsh.