US Federal Reserve will need to raise short-term borrowing costs by at least another half of a percentage point to turn monetary policy "modestly restrictive" and get inflation back on track to the Federal Reserve's 2 per cent goal, Dallas Fed President Lorie Logan said on Thursday. The Fed's quarter-point policy rate increase last month, to its current range of 3.75 per cent-4.00 per cent, was "an important first step" in tightening policy, Logan said in remarks prepared for Texas business executives and community leaders at the regional Fed bank's headquarters.
"Still, I currently estimate the target range needs to rise an additional 50 basis points or more to appropriately balance the outlook and risks for our dual mandate goals," she said. "We must restore price stability."
