Dallas Fed's Logan Calls For Rate Hikes, Not Cuts, Citing Sticky Inflation

Dallas Federal Reserve President Lorie Logan said on October 1 that the US central bank needs more rate hikes, not cuts, to bring inflation under control. In separate remarks, Logan called for an increase of "50 basis points or more," a sharp departure from market expectations that the Fed's next moves would be cuts. The comments matter because investors have largely priced policy easing into stock and bond valuations over the past year. If other Fed officials echo Logan's view, that repricing could reverse quickly, pushing bond yields higher and pressuring rate-sensitive sectors like housing and growth stocks. What remains unresolved is whether Logan speaks for a broader faction on the Federal Open Market Committee or represents a hawkish outlier. Her comments followed data showing Tokyo's core inflation accelerated in September, strengthening the case for the Bank of Japan to keep raising rates too, suggesting developed-market central banks may be converging on a tighter stance than markets had assumed.