Dallas Federal Reserve Bank President Lorie Logan said on the 16th that inflation is not on track to return to the Fed's 2% target, and indicated that a slightly higher interest rate level would better balance the mandates of price stability and maximum employment. Logan, who holds a vote on the FOMC this year, could dissent against holding rates steady at the meeting on the 28th and 29th. In a speech, she noted that while the June Consumer Price Index rose 3.5% year-on-year, a slower pace, the path back to the target remains uncertain. She warned of risks that a reversal in energy prices due to heightened Middle East tensions and a surge in AI-related investment could add to upward price pressures. The current policy rate stands at 3.50% to 3.75%, and the Fed decided at the June FOMC meeting to hold rates steady for the fourth consecutive meeting. Logan's remarks reflect the views of a minority concerned about upside inflation risks.