Dallas Fed's Logan Calls for Two More Rate Hikes This Winter

Lorie Logan isn't ready to call it a day on rate hikes. The Dallas Fed President said the central bank may need at least two more 25-basis-point increases this winter to get a grip on stubborn inflation. That would push policy further into restrictive territory, past where it sits now.

The current federal funds range stands at 3.75%–4.00%. Logan wants the Fed to move from there toward a more restrictive stance, arguing that's what it takes to drag inflation back to the central bank's 2% target. Inflation is still running hot: September's PCE reading came in at 3.6%, well above that goal.

Her comments point to a more aggressive tightening path than some in the market may have priced in. The next clues will come from upcoming Federal Reserve meetings, where rate-hike discussions could either back Logan's position or push against it.

Traders and economists will also be watching fresh inflation data and any statements from other Fed officials for signs of whether the hawkish tone spreads. Federal Reserve Chair Jerome Powell's remarks on inflation and monetary policy adjustments are set to draw especially close attention.