St. Louis Fed President Musalem and Dallas Fed President Logan say the central bank will likely raise rates again before year‑end, reinforcing market expectations.

Federal Reserve presidents Alberto Musalem and Lorie Logan told audiences on Friday that the policy‑making body will probably need to resume tightening later this year. Their remarks came after the Fed’s latest meeting left the target range for the federal funds rate unchanged, a decision that has kept markets on edge.

What the presidents said

• Musalem, speaking at the Shadow Open Market Committee, warned that “additional firming of monetary policy will be necessary, and soon,” and suggested a modest hike could be less disruptive than a larger move later.
• Logan, addressing students at Davidson College, said the FOMC “needs to implement at least two more 25‑basis‑point rate increases,” though she added a skip‑meeting would not alter the ultimate policy destination.

Market reaction

• CME’s FedWatch tool shows Fed‑funds futures pricing a roughly 76% chance of a 0.25‑point hike at the December meeting.
• Investors had been betting on a December hike, and the presidents’ comments reinforce that view.

What traders are watching next

• Upcoming U.S. GDP data and inflation reports for clues on the timing of any hike.
• The December FOMC vote, where Logan will cast a vote and Musalem remains a non‑voting member until 2028.

Related news

• Yen holds firm after BoJ’s hawkish hold
• BoJ holds rate but warns of inflation overshoot risk
• ECB's Nagel says decisive action will be taken if inflation risks persist
• Evening market overview, Oct 30, 2026

More from ITF

• ITF trading signals for gold and forex
• Copy verified traders with ITF Copy Trading
• This week’s economic calendar

This article is compiled from international market news for information only. It is not investment advice.