Dallas Federal Reserve President, Dr. Lorie Logan, has called for at least two more 25 basis point rate hikes to address inflation pressures that extend beyond the energy sector. Speaking at the Fed’s annual energy conference, Logan emphasized that the current monetary policy is accommodative, rather than restraining demand, and that further policy tightening is necessary to ensure inflation remains within the target range.

According to Logan, the Fed may be able to move more rapidly this winter than it has so far this fall, with the policy rate at least 50 basis points below what she considers a modestly restrictive level. She believes that after two more increases, it would make sense to pause and assess whether further action is needed. This approach suggests a near-term emphasis on getting policy into restrictive territory promptly, rather than signaling an open-ended hiking cycle.

Logan’s comments are particularly relevant to the path of policy over the remaining 2026 meetings and into the winter, as she is an FOMC voter this year but will not be a voting member in 2027. Her insights provide valuable guidance for investors and market participants as they navigate the complex and evolving monetary landscape.

In conclusion, Logan’s call for at least two more rate hikes underscores the Fed’s commitment to maintaining price stability and addressing inflation pressures. Her focus on policy restrictiveness highlights the importance of balancing growth and inflation concerns, and her near-term emphasis on getting policy into restrictive territory promptly underscores the need for timely and effective monetary policy action.