Key facts
- Dallas Fed President Lorie Logan stated the FOMC needs at least two more 25-basis-point rate increases.
- Logan believes a pause after further hikes would allow for examination of economic and financial developments.
- She voted to keep interest rates unchanged this week, aligning with the majority.
Dallas Fed President Lorie Logan said on Friday that the Federal Reserve needs to implement at least two more 25-basis-point rate increases to get inflation under control. She indicated that after these hikes, it would be appropriate to pause and assess economic developments. Logan joined the majority in a 10-2 vote this week to leave short-term US interest rates in their current 3.75%-4.00% range, even as the committee noted the economy is strong and inflation too high. Logan, considered among the more hawkish policymakers, believes the target rate should be at least half a percentage point higher to restrict the economy sufficiently to return inflation to the Fed's 2% goal. She noted that financial markets have been volatile and that adjusting policy more gradually can help participants adapt to higher rates.