Fed's Paulson says more rate hikes may be needed to quash inflation

Philadelphia Fed President Anna Paulson said on Thursday that additional interest-rate hikes may be needed to push inflation back toward the Federal Reserve’s 2% target. In prepared remarks for an event at her regional bank, Paulson said inflation remains “stubbornly elevated” and that returning it to 2% is a top priority, while weighing risks to the labor market. She indicated that “some modest further tightening” could be warranted if conditions evolve as she expects. Her comments were her first since the Fed raised the benchmark overnight rate by 0.25 percentage points to 3.75%-4.00% last week.