Logan signals at least 50 basis points of further rate hikes

Based on the current economic outlook and her forecasts, Logan said the Fed should raise its policy rate by at least another 50 basis points.

However, Logan noted that rising US Treasury yields in recent weeks could slow the economy. The 30-year Treasury yield has risen 64 basis points since June, and Logan said this tightening in financial conditions could reduce the need for additional Fed rate hikes. Markets are now pricing in a 28% probability of a rate increase at the Fed’s October 27-28 meeting.