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The US Federal Reserve is "on track" in its fight against inflation, with the full impact of its interest-rate hikes likely yet to be felt, a top Fed official said Friday.
The US central bank has hiked its benchmark lending rate 10 times in quick succession since last year in a bid to tackle rising prices, which remain above its long-term target of two percent.
"We are 'doing what is necessary or expected' of us," Fed governor Philip Jefferson told a California conference in prepared remarks, referring to the Merriam-Webster dictionary definition of being "on track."
"Furthermore, monetary policy affects the economy and inflation with long and varied lags, and the full effects of our rapid tightening are still likely ahead of us," he said.
Jefferson, who President Joe Biden nominated earlier Friday to become the next vice chair of the Fed, sounded a more optimistic note on inflation than two of his peers on the Federal Open Market Committee (FOMC).
This suggests policymakers on the FOMC are divided over the likelihood of a further interest-rate hike when the committee next convenes June 13-14.
"Should inflation remain high and the labor market remain tight, additional monetary policy tightening will likely be appropriate," Fed governor Michelle Bowman told a conference in Germany earlier Friday.
On Tuesday, New York Fed President John Williams also left the door open to a further interest rate hike to combat inflation.
"We haven't said we're done raising rates," he told the Economic Club of New York.
"I think what we're going to need to do -- as we always do -- is be data dependent," he said.
Futures traders see the probability of another rate hike on June 14 as slim, although the odds of further tightening have increased in recent days, according to data from CME Group.