Fed’s Logan: “Excess inflation is unacceptable,” and it’s clear the Fed will need to raise rates at least twice more.

Fed official Logan stated on November 10: “Tolerating excessive inflation is unacceptable. Given current conditions, the Fed may raise rates faster this winter than previously anticipated—requiring at least two more 25-basis-point hikes. After completing those hikes, a pause to assess whether further policy adjustments are needed would be prudent and reasonable. The current federal funds rate stands at least 50 basis points below the lower bound of the ‘moderately restrictive’ range. Gradual policy adjustments help avoid an unnecessary sharp slowdown in economic activity. It’s important to emphasize that wartime-related energy supply disruptions are not the sole driver of rising prices, nor are tariffs the only source of upward price pressure; broader inflationary trends may persist.”