Fed Dallas President Lorie Logan calls for two more interest rate hikes

Lorie Logan, President of the Federal Reserve Bank of Dallas, stated that the Federal Open Market Committee (FOMC) needs to implement at least two more interest rate increases of 25 basis points each to combat inflation.

Speaking to students at Davidson College, Logan suggested that a pause should follow these adjustments to evaluate further necessary measures. She estimated that current interest rates are at least 50 basis points below the level required to return inflation to the target.

Logan noted that the goal is to make monetary policy “moderately restrictive” to ensure price stability and maximum employment. She described the fact that the Fed has not reached its 2% inflation target for nearly six years as “unacceptable,” noting that core personal consumption expenditures (PCE) rose 3.1% in the 12 months leading up to September.