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US Fed official says rate hikes may be needed if inflation surges

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Four out of 12 voting members on the Federal Reserve's rate-setting committee dissented against its latest policy statement

Four out of 12 voting members on the Federal Reserve's rate-setting committee dissented against its latest policy statement

A key US Federal Reserve official warned Friday that a series of interest rate hikes could be needed if price shocks from the Middle East war are larger than expected, fuelling inflation.

"Federal funds rate increases, potentially a series of them, could be warranted, even at the risk of further weakness to the labor market," Minneapolis Fed President Neel Kashkari said, explaining his dissent to the central bank's overall decision this week.

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Originally published on doc.afp.com, part of the BLOX Digital Content Exchange.

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