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Dallas Fed speech and Reuters report · October 1, 2026

Dallas Fed's Logan sees at least 50 more basis points of tightening

Dallas Fed President Lorie Logan said she estimates the federal-funds target may need to rise at least another 50 after September's 25-basis-point increase. She cited resilient growth, a balanced labor market and inflation trending toward the mid-2% range, above the Fed's 2% goal.

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Analysis

Logan's view arrives as markets have lowered the implied odds of an October increase and Treasury yields reversed their climb. She also noted that higher long-term yields can reflect term premiums that slow the economy, potentially reducing the amount of additional policy tightening needed. Her estimate is one policymaker's view, not a new FOMC decision.

What remains uncertain

The appropriate policy path depends on incoming data. Logan said higher term premiums may themselves slow activity, and her estimate does not bind the FOMC.

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