Fed Official Warns of Further Rate Hikes Amid Rising Inflation Risks

A Federal Reserve board member has signaled that further interest-rate increases may be necessary as inflation risks rise and pressure on the labor market eases.

The official said the central bank may need to adjust policy again, with additional tightening a possible base-case scenario.

Inflation remains the main concern, and the path back to the Fed's 2% target is not clearly established. The risks around achieving the inflation goal have increased, while labor-market risks have declined.