Two Fed Officials Just Called for More Rate Hikes, Starting Soon

Two Fed officials argued within days of the latest pause that additional rate hikes are still coming, putting pressure on market expectations for stocks and tightening financial conditions. Dallas Fed President Lorie Logan said on October 30, 2026 that the FOMC needs at least two more increases of 25 basis points, defining a basis point as one hundredth of a percentage point. St. Louis Fed President Alberto Musalem said “additional firming” will be necessary “and soon.” The report links the move to weakness in the SPDR S&P 500 ETF Trust (SPY), which fell 1.77% to $755.78 that day, alongside an AI-driven selloff that pushed the Nasdaq to a three-month low. The Fed vote held the target range at 3.75%–4% by 10–2, with Lisa Cook and Beth Hammack dissenting in favor of a hike. Markets, via CME FedWatch, priced a December quarter-point hike at about 76%.