Dallas Fed President Lorie Logan said she still believes at least two more 25 basis point rate increases are needed, but the pace may need to be faster than the Fed's actions this fall.
In prepared remarks for a meeting in Houston on Tuesday, Logan said: "Given the current outlook, I still clearly believe that the Federal Open Market Committee (FOMC) needs to implement at least two more 25 basis point rate hikes." Logan holds a voting seat on the FOMC this year.
Logan also said that while the pace of rate hikes will depend on economic data and financial conditions, "the pace of action this winter may be able to be faster than the FOMC's pace so far this fall."
Fed officials kept rates unchanged at their October 27-28 meeting, after the central bank delivered its first rate hike of 2023 in September. According to the median projection from September, most officials at the time indicated at least one more rate increase would be needed this year. Since then, multiple Fed officials have reiterated this view in recent speeches, saying rate increases should maintain a gradual pace.
However, Fed Governor Waller said earlier on Tuesday that the central bank should consider raising rates by 50 basis points at its December meeting.
A report released Tuesday morning showed that the October Consumer Price Index (CPI) rose more than expected, with core inflation accelerating to 0.3% month-over-month. Logan said she is concerned that another inflation gauge to be released later this month could show similar acceleration to October.
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