US Fed official says more rate increases needed

US Atlanta Federal Reserve (Fed) president Jack Guynn said on Wednesday that more increases of interest rate are necessary to ensure sustainable US economic growth, given the upward drift in inflation over the last two years,

"Given my current outlook for the economy, my personal view is that we've not yet reached a neutral policy stance," Guynn said in remarks released by the US Fed.

He said that "I believe the economy remains on a solid and sustainable path of growth" and businesses continue to "ramp up" their investment spending.

"Taken as a whole, these and other factors suggest that our economy has ample strength to withstand further removal of accommodative monetary policy -- in my view, a step that is needed to sustain economic growth," Guynn said.

He also said that "my point is that all of the inflation measures over the past seven or eight quarters show a similar -- but distinct -- upward tilt."

The US Fed has raised short-term interest rates eight times since June of last year and pushed the US federal fund rate to 3 percent. Many US economists have forecasted that the US Fed will continue to push short-term interest rates higher this year to keep inflation in check.

Source: Xinhua