Logan said the Federal Reserve should raise interest rates by at least 50 basis points and further increase rates several more times.
智通财经2026/10/01 23:41Show original
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In 2026, FOMC voting member and Dallas Federal Reserve President Logan delivered a speech: "The Federal Reserve's policy stance has been consistently off track. The Fed should raise interest rates, with a target of at least 50 basis points. Moreover, further rate hikes are needed at least several more times to offset last autumn's rate cuts. Without higher rates, inflation cannot reach the Fed's 2% target. The Fed needs to keep rates at a moderately restrictive level, but that level is still uncertain for now, so further rate hikes may be needed in the future." Regarding the recent rise in bond yields, Logan emphasized the need to distinguish: "If the increase in US Treasury yields reflects the market's expectation of a more aggressive policy by the Fed, then this rise does not do our job for us. But if yields rise due to term premiums, that is, the additional compensation investors require to hold long-term debt, then this change may slow down the economy and reduce the need to tighten monetary policy."
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