Dallas Fed's Logan Calls for At Least Two More 25-Basis-Point Rate Hikes

Dallas Fed President Lorie Logan said Friday the Federal Reserve needs at least two more 25-basis-point rate increases to bring inflation under control, in the most explicit rate guidance from a U.S. central banker since Chairman Kevin Warsh took over in May. "It remains clear to me, given the current outlook, that the FOMC needs to implement at least two more 25-basis-point rate increases," Logan said in remarks prepared for Davidson College students. She said it would then "make sense" to pause and assess developments. Logan joined the FOMC's 10-2 vote this week to hold short-term rates at 3.75%-4.00%. The hawk said the target rate should be at least half a percentage point higher to sufficiently restrict the economy and steer inflation toward the Fed's 2% goal. She attributed recent rises in longer-term borrowing costs to expectations for stronger growth and higher rates, rather than a policy headwind, and said clear guidance on the Fed's policy destination is essential—a view contrasting with Warsh's preference for guidance only in crises.