Market & Economy
The Economic Times25 Sept 2026, 12:31 am IST
US Federal Reserve official suggests more interest rate hikes to control inflation
What happened
- Philadelphia Federal Reserve President Anna Paulson said more interest rate hikes may be needed to bring inflation down to the 2% target.
- She noted that current inflation is between 2.5% and 3%.
- Paulson described the US economy as strong, citing stable labor markets and growth in technology investment.
- The Federal Reserve recently raised its benchmark interest rate to a range of 3.75% to 4.00%.
Key terms explained
Financial terms from this story, in everyday words.
- Interest rate
- The cost of borrowing money, set by a central bank to influence economic activity.
- Inflation
- The rate at which the general level of prices for goods and services is rising.
- Benchmark interest rate
- The base rate set by a central bank that influences other interest rates in the economy.
Original source
The Economic Times
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