The Federal Reserve needs to increase the policy rate by at least 50 basis points to bring inflation back toward its 2% target, Dallas Fed President Lorie Logan said in a speech on Nov 10. Logan stated that the current interest rate remains at least 50 basis points below a modestly restrictive level and specified that the central bank should implement at least two additional 25 basis point hikes before pausing to evaluate further action.
Following a disappointing consumer price index report, Logan indicated that the Fed could raise rates more rapidly this winter than the FOMC has moved so far this fall. She noted that price pressures are now broader than energy and tariffs, but argued that robust spending and a balanced labor market provide the Fed with the necessary room to continue tightening.
