Logan Calls for Two More Rate Hikes, Sees Scope to Move Faster This Winter

Key Facts

Lorie Logan, president of the Federal Reserve Bank of Dallas, called for at least two additional interest rate increases of 25 basis points each and said a faster pace this winter may be possible. In remarks reported by Reuters on November 10, Logan tied the precise pace of increases to the near-term economic and financial environment. Her stance comes as data showed consumer prices continued to rise in October, though at a slower pace than the previous month. Logan said, "It may be possible to move at a faster pace this winter than the Federal Open Market Committee has moved so far this fall."

October data showed the U.S. Consumer Price Index rose 0.4%, compared with an increase of 0.6% in September, according to Axios coverage. The slowdown in the monthly rate of increase points to easing headline inflation, but does not erase the continued rise in prices during the month. The core index, which excludes food and energy, rose 0.3% in October for the third consecutive month, according to Axios. Food prices rose 0.5% during the month, while the energy index climbed 0.7% after a larger 5.2% increase in September, according to data from the U.S. Bureau of Labor Statistics. The figures reflect a divergence between slowing increases in some components and continued pressure in the core index.

In detail, the index excluding food and energy rose 0.3% in October, the same monthly increase recorded in September and August, according to the Bureau of Labor Statistics. The shelter index rose 0.3% in October, after a 0.4% increase in September. In energy, gasoline price increases slowed to 1% in October from 9.1% in the previous month, according to Axios; the broader energy index, meanwhile, posted a monthly increase of 0.7% after rising 5.2% in September. Increases in recreation, medical care, motor vehicle insurance and airfares contributed to the rise in the core index, according to Axios coverage. Logan said, "Excess inflation is unacceptable," calling for a swift balancing of inflation and employment risks.

Logan does not limit price pressures to energy disruptions related to the war or tariffs; she pointed to broader trends that may persist even after recent shocks fade. At the heart of her argument, that means a decline in some energy-related increases is not enough on its own to end concerns about inflation, with the core index holding at 0.3% for the third month. Logan described economic growth as strong, consumer spending as solid and business investment as robust in a speech delivered on October 30. At the time, she said the labor market was balanced and may be tightening slightly, according to the Federal Reserve Bank of Dallas. This backdrop links her assessment of demand and the labor market to her call to continue raising rates.

The inflation data coincided with a move in bond markets: The Associated Press reported that yields rose as traders increased their expectations for Federal Reserve rate hikes, while U.S. stocks came under pressure from the bond market. The response places Logan's remarks and the price data within the market debate over the path of monetary policy, without indicating that a new decision has been made. The next Federal Open Market Committee meeting is scheduled for December 8 and 9, according to Reuters. Before the meeting, the October Producer Price Index is due on November 13, according to the Bureau of Labor Statistics calendar, providing another inflation reading. The calendar did not establish a specific expected rate for the index.

The Bureau of Labor Statistics noted a limitation affecting year-over-year comparisons for some price indexes: Survey data for October 2025 could not be collected because of a lapse in appropriations, and October 2025 indexes were not published for most Consumer Price Index series. As a result, the bureau could not publish 12-month changes in October 2026 for indexes lacking October 2025 data. This limitation does not change the published monthly figures for October, but it defines the scope of available year-over-year comparisons. October's monthly reading, along with the Producer Price Index due ahead of the December meeting, remains among the data preceding the next monetary policy meeting.