Fed's Logan Urges at Least 50 Basis Points in Additional Rate Increases

Dallas Fed President Lorie Logan stated that the central bank's benchmark interest rate must rise by at least another 50 basis points to restore price stability and achieve a modestly restrictive stance. Logan's hawkish stance follows a recent 25 basis point hike that lifted the target range to 3.75%-4.00%, which she characterized as merely an initial step. Arguing that inflation is unlikely to fall much below 2.5% without further action, she highlighted strong economic growth and consumer spending. Her call for further tightening contrasts with officials favoring a pause.