According to CNBC, Philadelphia Federal Reserve President Anna Paulson said she and her colleagues may need to raise interest rates further to bring inflation back to target. Speaking a week after the Federal Open Market Committee lifted benchmark borrowing costs by a quarter percentage point to a target range of 3.75%-4%, Paulson said inflation trends remain concerning and that underlying inflation is still running around 2.5%-3%, well above the Fed's 2% goal. In prepared remarks for a fintech conference in her home district, she said the best she could say about underlying inflation this year is that it has not worsened. Paulson also said that if conditions evolve as she expects, some modest further tightening may be warranted. The comments came as markets increased expectations for additional Fed tightening, with traders pricing in a 64% chance of another hike in October and expecting another move in January. Fed funds futures implied a rate of 4.8% by the end of 2027. New York Fed President John Williams said earlier Thursday that he thought it was reasonable to expect another hike before the end of the year.