Dallas Fed President Says Global Oil and Gas Use Must Decline

Federal Reserve Bank of Dallas President Lorie Logan said the world may eventually need to reduce consumption of oil and natural gas to balance volatile energy markets. Speaking at a closed-press conference, Logan cited physical supply constraints and stated that current consumption rates are not sustainable.

She added that energy markets are expected to stabilize, though stabilization may require a downward adjustment in global use.

Logan did not offer near-term economic forecasts. She was one of three Fed policymakers who objected to language in the post-meeting statement after the April 2026 FOMC meeting that suggested the next policy move would be an interest-rate cut. Logan argued that forward guidance should match the policy outlook.

She noted that elevated inflation risks made an interest-rate hike as likely as a cut. The dissent was driven in part by surging energy and oil prices.