Dallas Fed President Lorie Logan said the Federal Reserve may need to raise its policy rate by at least another 50 basis points to make monetary policy modestly restrictive and return inflation to the central bank’s 2% goal. The Fed raised its target range by 25 basis points last month to 3.75%-4.00%, which Logan called an important first step. She said the economy is strengthening, the labor market is well balanced and inflation is declining, but it may not fall much below 2.5% without further rate increases. Logan also said the recent rise in long-term Treasury yields reflects expectations of stronger growth and higher policy rates, though higher term premiums could slow the economy and reduce the need for additional tightening. She will continue monitoring labor markets, prices, growth, consumption and financial conditions.