Fed's Logan backs two more rate hikes, says they may need to come fast

Dallas Federal Reserve president Lorie Logan has called for two more interest rate increases, and said they may need to be delivered rapidly, putting the prospect of a faster tightening path back on the table for global markets.

Logan's call for further hikes, and for the possibility of moving quickly, points to concern inside the Fed that inflation is not yet beaten. For investors, that means the cost of borrowing in dollars could keep rising, pressuring risk assets from equities to cryptocurrencies and tightening financial conditions for emerging economies.

Her remarks land as markets weigh how far the US central bank will go. A faster pace of increases would leave less room for the pause many investors had hoped for, and would raise the dollar cost of capital for borrowers worldwide.

The Fed sets the benchmark rate that anchors global dollar funding. Any signal of more, or faster, hikes feeds directly into bond yields, currency moves and the appetite for riskier holdings, including digital assets.

What it means for Pakistan: Higher US rates tend to strengthen the dollar and pull capital toward US assets, which can add pressure on the rupee and on Pakistan's dollar-denominated borrowing costs. For Pakistani investors and crypto holders, a faster Fed tightening path usually means a firmer dollar and weaker appetite for risk assets, a combination that has weighed on digital asset prices in past cycles.