Federal Reserve Board Member Says More Rate Hikes May Be Needed
The official cited rising inflation risks and easing labor-market risks while expecting a slight pickup in second-half growth.
A Federal Reserve board member said 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 official also said the risks around achieving the inflation goal have increased, while labor-market risks have declined. Economic growth is expected to improve slightly in the second half of the year compared with the 2% growth recorded in the first half.
The comments point to continued focus on inflation before the Federal Reserve considers a less restrictive policy stance.
