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St. Louis Fed President MUSALEM said the Fed will likely need additional rate hikes to bring inflation back to 2% and that policy must tighten further within a 'timely' horizon. He suggested if the horizon is ~18 months, rates may need to rise again over the next 6—9 months.
Fed projects a slow return to inflation target, but no rise in unemployment Warsh says labor market damage is not needed to restore price stability Policymakers see expectations leading to tempered price hikes Others argue demand, somewhere in the economy, will have to take a hit By Howard Schneider and Ann Saphir WASH