Fed Predicts More Rate Hikes to Tackle Inflation

Dallas Fed President Lorie Logan predicts that the US Federal Reserve will need to raise interest rates by at least another half of a percentage point to achieve its inflation target. This would bring the policy rate range up from its current 3.75-4.00% to a more restrictive level, helping to combat rising prices.

In her prepared remarks to Texas business executives, Logan stated that the recent quarter-point rate increase was an important first step in tightening policy, but more is needed to balance the economy's outlook and risks.

She emphasized the need for price stability, noting that inflation has fallen as transitory factors fade, but still sits at around 2.5% - a level that will not be reached without further rate hikes.