Federal Reserve official Paulson stated that the central bank may need to raise interest rates again to effectively lower inflation. He noted that a September rate hike would help adjust monetary policy to a more effective anti-inflation stance as underlying price pressures remain stubbornly high.
The balance of inflation risks shifted prior to the September policy meeting, with the economy demonstrating resilience and strengthening growth momentum. Paulson emphasized that these factors support the potential need for further tightening to ensure inflation returns to target levels.
Fed's Paulson: Another Rate Hike May Be Needed to Tame Stubborn Inflation
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