Dallas Federal Reserve President Lorie Logan said on Tuesday that the US central bank needs at least two more quarter-point interest rate rises to bring inflation down, and that it may need to move more quickly this winter than it has so far this autumn.

Logan, who is a voting member of the Federal Open Market Committee (FOMC) in 2026, was speaking in remarks prepared for the 11th joint energy conference hosted by the Federal Reserve banks of Dallas and Kansas City, hours after October consumer prices came in hotter than forecast.

"It remains clear to me, given the current outlook, that the FOMC needs to implement at least two more 25-basis-point rate increases," Logan said, adding that the exact pace could depend on near-term economic and financial conditions.

Faster tightening this winter

Logan said the Fed may need to act promptly to stop broadening price pressures from becoming embedded in the economy. "It may be possible to move more rapidly this winter than the FOMC has moved so far this fall," she said.

She also said the policy rate is at least 50 basis points below a modestly restrictive level, and that once two further increases are in place it would make sense to pause and assess what further action may be appropriate.

Her remarks add to a hawkish turn in Fed commentary on Tuesday. Earlier in the day, Fed Governor Christopher Waller said in London that he was leaning towards a 25-basis-point rise at the December meeting, but would consider a larger 50-basis-point move if inflation stayed elevated.

Hot October inflation set the scene

The Bureau of Labor Statistics reported on Tuesday that US consumer prices rose 0.4% in October from the previous month, above the 0.3% rise economists had expected, although slower than September's 0.6% increase. Core prices, which exclude food and energy, rose 0.3%, against a forecast of 0.2%.

At that pace, core inflation would run at more than 4% over a year, well above the Fed's 2% target, which is measured by the personal consumption expenditures price index. Core PCE inflation was 3.1% over the 12 months through September, and inflation has now run above the Fed's target for nearly six years.

No annual CPI figures were published with the October report, because last year's government shutdown prevented the collection of price data in October 2025.

Markets price in a December rise

Traders responded to the inflation data and the Fed comments by raising their bets on a December increase. According to the CME FedWatch tool, markets assigned an 89.2% chance to a 25-basis-point rise at the December meeting, with a 10.8% chance of a 50-basis-point move.

The Fed raised rates by a quarter of a percentage point in September but left them unchanged last month. Its next policy meeting is on 8 and 9 December, when officials will set the path for rates against the latest inflation and growth data.

Logan has been president and chief executive of the Federal Reserve Bank of Dallas since August 2022. She previously ran market operations at the Federal Reserve Bank of New York, where she managed the system's securities portfolio and implemented monetary policy for the FOMC.

Sources: Kitco (Reuters) and FXStreet.