Federal Reserve policymakers suggested that they're prepared to raise interest rates higher than previously planned, though not necessarily at a faster pace, to defeat persistent high inflation.
Kansas City Fed President Esther George said Friday that officials should raise rates to a restrictive level while avoiding too much haste, which could "disrupt financial markets and the economy in a way that ultimately could be self-defeating."
George, in a virtual speech to S&P Global Ratings, also said the peak of this tightening cycle may have to be higher. She said U.S. households have savings that could help them keep spending, pointing to the Fed's need to "keep at this" for a while.
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