Federal Reserve Watch for Oct. 2: Logan Says Another 50 Basis Points of Policy Tightening Needed

02:24 PM EDT, 10/02/2026 (MT Newswires) -- Dallas Fed President Lorie Logan (voter) said that the target range for the federal funds rate need to be raised by another 50 basis points to slow inflation but added that the higher yields currently being seen could do some of the FOMC's job of tightening policy. Recent comments of note: (Oct. 1) Fed Vice Chair Philip Jefferson (voter) said that he supported the interest rate increase at the September FOMC meeting but said that it may take time for the committee to decide on a further increase and that more data will allow the FOMC to make the correct decision. (Sept. 30) Minneapolis Fed President Neel Kashkari (voter) said that he expects the FOMC will need to raise rates one more time in 2026, noting that the recent milder inflation data did not alter his impression that price pressures are too high and need to be brough down. (Sept. 30) Chicago Fed President Austan Goolsbee (nonvoter) noted a growing divergence between how households view the US economy and what the hard data shows, complicating the Fed's job and putting the emphasis on incoming information. (Sept. 30) Fed Governor Lisa Cook (voter) repeated that she remains committed to lowering inflation, which has been elevated for too long. (Sept. 29) Fed Governor Michael Barr (voter) repeated that further rate increases are likely to ensure that inflation moves down toward the 2% target, noting that risks to inflation have increased while risks to the labor market have decreased. (Sept. 29) New York Fed President John Williams (voter) said that it is "imperative" for the FOMC to bring inflation down toward its 2% target but said that after the rate increase at the last FOMC meeting, the Committee now has time to receive more information before acting again. He said that his expectation is for one more rate increase this year. (Sept. 29) St. Louis Fed President Alberto Musalem (nonvoter) said that clear communication on the part of the Fed promotes better outcomes but did not suggest that the FOMC needs to give forward guidance for its exact rate path. Rather the FOMC should communicate "the framework for how and why policy is determined." (Sept. 28) Fed Governor Lisa Cook (voter) said that she expects further upward inflation pressure from the AI buildout, higher oil prices and supply chain disruptions in the Middle East, while the labor market is "well positioned to handle an increase in rates."