Fed Officials Signal Possible Further Rate Hikes

Several Federal Reserve officials said further interest-rate increases may be needed to bring persistently high inflation back to the Fed’s 2% target, despite the central bank’s decision to hold rates steady. Dallas Fed President Lorie Logan called for at least two quarter-point hikes, followed by a pause to assess economic and financial conditions. St. Louis Fed President Alberto Musalem said additional tightening should come soon, arguing that inflation risks remain tilted to the upside and gradual moves could avoid more disruptive action later. Musalem also noted that inflation-adjusted wage growth has left many workers falling behind even as headline labor-market measures appear stable.