In 2026, Fed official Logan supports a rate hike by the Federal Reserve in December, believing at least two rate increases totaling 50 basis points are necessary.

In a speech on November 10 (after the CPI was released), Logan, a 2026 Federal Reserve official and President of the Dallas Fed, reiterated that based on the current economic outlook, the Federal Reserve needs to raise rates at least two more times, with each increase being 25 basis points, totaling at least 50 basis points.

She stated that the specific pace of rate increases will depend on recent economic and financial conditions, and that the pace of rate hikes this winter may be faster than this fall. After implementing two rate hikes, she leans toward pausing for a while to observe changes in the economy and financial markets before deciding whether further action is necessary.

Logan believes that the current level of interest rates is still at least 50 basis points away from a level that could create moderate constraints. The CPI released that day showed higher than expected for October, raising concerns that the upcoming October PCE inflation may rise.

Regarding the decision not to raise rates in the October meeting, Logan explained that there was significant market volatility at the time, and gradual adjustments would allow households, businesses, and markets more time to adapt, as well as reduce the risk of a rapid deterioration in economic activity.

However, in her view, not raising rates at one meeting does not change the subsequent need for further tightening.

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