The U.S. central bank must implement at least two additional quarter-percentage-point interest rate hikes to curb <a It remains clear to me, given the current outlook, that the FOMC (Federal Open Market Committee) needs to implement at least two more 25-basis-point rate increases," Logan said in remarks prepared for delivery to an energy conference sponsored by the Dallas and Kansas City Fed banks. "Excess inflation is unacceptable."
Consumer prices, even when excluding volatile food and energy costs, climbed 0.3% in October. If this rate continues, it would result in year-over-year inflation exceeding 4%. The Federal Reserve maintains a 2% inflation target, as tracked by the <a The exact pace of increases could depend on the near-term economic and <a Logan said. "It may be possible to move more rapidly this winter than the FOMC has moved so far this fall."
Inflation is climbing due to more than just wartime energy disruptions or tariffs; it is also driven by broader trends that could remain even after recent shocks fade, she noted.
“Tighter policy will be necessary to appropriately balance the outlook and risks for inflation and employment,” she said. “And it is important to achieve that balance promptly. The longer above-target inflation persists, the greater the risk that it becomes baked into behavior.”
The Federal Reserve is scheduled to hold its next policy meeting on December 8-9.
