Fed's Logan calls for two more rate hikes, possibly rapidly
TLT•Dallas Fed President Lorie Logan said the Fed needs at least two more 25-basis-point rate increases to bring down inflation and may be able to move more rapidly this winter.
1. At least two more hikes
Logan said the Federal Open Market Committee needs to implement at least two more 25-basis-point rate increases, adding that the exact pace could depend on the near-term economic and financial environment. She said it may be possible to move more rapidly this winter than the Fed did this fall.
2. Inflation remains a concern
Consumer prices excluding food and energy rose 0.3% in October, a pace that, if sustained, would translate to inflation above 4% year over year. Logan said broader price pressures could persist beyond recent shocks and that prolonging above-target inflation raises the risk of it becoming embedded in behavior. The Fed's next policy meeting is December 8-9.
