Fed Officials Emphasize Need for Higher Interest Rates to Tackle Inflation

Three Federal Reserve officials have stated that higher interest rates will be necessary to achieve the central bank's 2% inflation target. The Fed held interest rates steady in June but is expected to resume rate increases at its next meeting in July. Most policymakers anticipate two more rate hikes by the end of the year. The officials emphasized the need to bring inflation back to a sustainable path and expressed concerns about core inflation. They also acknowledged signs of an economic slowdown but differed in their views on the appropriate level of patience in monetary policy.