Fed needs at least two more rate hikes, Logan says
TLT•Dallas Fed President Lorie Logan said the Fed needs at least two more 25-basis-point rate increases to bring inflation under control, then should pause to assess economic and financial developments. The Fed this week left rates at 3.75%-4.00%.
1. Logan calls for more hikes
Lorie Logan said the Federal Open Market Committee needs to raise rates at least twice more by 25 basis points each, then pause to assess economic and financial developments. She said the target rate should be at least half a percentage point higher to restrict the economy enough to return inflation to the Fed’s 2% goal.
2. Fed held rates this week
Logan joined a 10-2 vote this week to leave short-term rates in the 3.75%-4.00% range. She said gradual policy adjustments can help households, businesses and market participants adapt to higher rates and reduce the risk of a sharper deterioration in economic activity.
