(Nov 11): Federal Reserve Bank of Dallas president Lorie Logan said she still sees the need for at least two quarter-point rate increases, but that the pace of those hikes may need to be quicker than the Fed is moving this fall.

“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 on Tuesday in prepared remarks for a conference in Houston, referring to the rate-setting Federal Open Market Committee (FOMC) on which she votes this year. 

While the pace of hikes will depend on economic data and financial conditions, “It may be possible to move more rapidly this winter than the FOMC has moved so far this fall,” Logan added.

Fed officials left interest rates unchanged at their Oct 27-28 meeting after raising them by a quarter percentage point in September. That was the first rate hike since 2023 as policymakers seek to cool inflation that has been above their 2% target for more than five years. 

A majority of officials in September signalled at least one more rate increase would be necessary this year, according to their median projection. While several Fed officials have reinforced this view in recent remarks and said hikes can come at a gradual pace, governor Christopher Waller earlier on Tuesday said the Fed should consider raising rates by a larger, half percentage point at its next meeting in December.

A report released on Tuesday morning showed the consumer price index rose by more than expected in October, with core inflation accelerating at a 0.3% pace from a month earlier. Logan said she’s concerned the Fed’s preferred gauge for inflation, due later this month, could show a similar pickup for October.

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