Fed officials signal need for rate hikes to combat inflation and bank stress.

Three Federal Reserve officials have suggested that more rate rises may be necessary to combat high levels of inflation, with two noting that problems in the banking sector could help cool price pressures faster than expected. However, the emergence of banking sector troubles may partially offset the need for additional rate increases. The officials also hinted at a looming slowdown in the economy, with some rise in unemployment likely needed to help lower wage price inflation.