Fed Officials Signal More Rate Hikes as Inflation Risks Persist

Philadelphia Federal Reserve President Anna Paulson has joined other policymakers in suggesting that additional interest-rate increases may be necessary to combat inflation. This stance is reflected in the Fed's recent decision to raise its benchmark rate and issue projections pointing to at least one more rate hike this year.

In a speech on Thursday, Paulson stated that 'some modest further tightening may be warranted' if conditions evolve as expected. She noted that underlying measures of inflation remain 'stubbornly elevated', citing energy and food prices as contributing factors.

Paulson's comments are part of a broader chorus of policymakers expressing concern about inflation risks. New York Fed President John Williams earlier stated that his colleagues still have 'a lot of work to do' in addressing lingering inflation risks.