Philadelphia Fed's Anna Paulson says 'modest' rate moves likely ahead to tame inflation

Philadelphia Federal Reserve President Anna Paulson said Thursday that she and her colleagues may need to raise interest rates further to bring inflation back to target. Speaking a week after the Federal Open Market Committee raised benchmark borrowing rates by a quarter percentage point, Paulson said inflation trends are still worrying. The rate hike, which took the key funds rate to a target range of 3.75%-4%, "brings policy closer to what I believe is needed to return inflation to 2% at a pace that balances inflation with risks to the labor market. Looking ahead, if conditions evolve as I expect, some modest further tightening may be warranted.