Dallas Federal Reserve President Lorie Logan said on Thursday, as reported by CNBC, on a speech due later at the Texas Bankers Association 138th Annual Convention, that data at this time does not support skipping an interest rate hike at the next meeting in June.

Logan mentioned that the Federal Reserve still has work to do to achieve its goal of price stability, which she considers a critical priority. She has an open mind ahead of the next Federal Open Market Committee (FOMC) meeting. According to her, the effects of banking stress on tightening are comparable to a 25-50 basis point increase. 

The CME FedWatch Tool shows the odds of a rate hike at the June meeting at 35.6%, up from 28% yesterday and 10% a week ago.

Market reaction

The US dollar is rising across the board, supported by Logan’s comments and recent US economic data. The DXY trades at 103.34, up 0.45% for the day, at the highest level since mid-March.