Fed officials signal rates may need to go higher to fight inflation

struck a hawkish tone Friday in their first comments since the central bank paused its aggressive interest rate hike campaign earlier this week.

Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin both laid groundwork for additional interest rate hikes this year amid signs of underlying inflationary pressure in the"Core inflation is not coming down like I thought it would," Waller said during a speech at an economics conference in Norway. "Inflation is just not moving, and that's going to require, probably, some more tightening to try to get that going down.

During a credit crisis, banks significantly raise their lending standards, making it difficult to get a loan. Borrowers may have to agree to more stringent terms like high interest rates as banks try to reduce the financial risk on their end. Fewer loans, in turn, would lead to less big-ticket spending by consumers and businesses.

With inflation still running abnormally high, Barkin said he is "comfortable" with further rate increases.

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