Fed Holds Rates Steady, but Dallas Fed's Lorie Logan Sees 'At Least' 50 Basis Points More Hikes

The Federal Reserve kept interest rates unchanged at its latest meeting, but the pause may be short-lived. Dallas Fed President Lorie Logan, a voting member of the rate-setting committee, said she sees "at least" 50 basis points in additional hikes in the coming months. That would mean two more quarter-point increases, or one larger half-point move, if inflation and the job market don't cool enough. Her comments signal that more Fed officials are leaning toward further tightening after a rapid series of hikes over the past year. The central bank has raised rates 10 times since March 2022, bringing the benchmark to a range of 5% to 5.25%. While some policymakers wanted to pause to assess the impact, Logan's stance suggests the debate is far from settled. Investors now expect a hike at the July meeting, with odds rising after her remarks. The Fed's next decision will hinge on upcoming inflation and employment data. For households and businesses, the message is clear: borrowing costs could go higher still.