Dallas Fed President Lorie Logan publicly stated that the FOMC may need to resume raising interest rates later in 2026 to bring inflation back to the 2% target. The remarks represent a notable hawkish signal from a voting-cycle influential regional president, coming at a time when markets had largely priced in a prolonged hold or eventual cuts.
For Armada's traditional repo desk, a resumed tightening cycle would compress collateral values on longer-duration Treasuries and agencies, widen term repo spreads, and shift hedge fund and asset manager borrowing behavior. Counterparty demand for short-tenor, high-quality collateral could spike, and MMF appetite may shift. Rate path assumptions embedded in current pricing need revisiting.