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Fed’s Logan says policy rate must rise at least 50 bps more

Bank of Dallas President Lorie Logan said higher rates are needed to revive price stability and that, at minimum, several more hikes are required to reverse last fall’s reductions.

Reported · Written up by our desk · Central Banks

Federal Reserve Bank of Dallas President Lorie Logan said the Fed must raise its short term policy rate by at least another 50 basis points to keep monetary policy modestly restrictive and bring inflation back to target, according to FXStreet.

Logan tied the need for additional tightening to the idea that without higher rates, inflation would not reach the Fed’s 2% goal, and she pointed to the importance of monitoring yield moves and their impact on tightening requirements.

She also indicated that uncertainty remains about how high the policy rate must rise, but said that at minimum, several more rate hikes would be needed to reverse reductions made last fall.

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