The Globe and Mail reports in its Friday edition that the U.S. central bank will likely need to raise interest rates again to curb unacceptably high inflation. A Reuters dispatch to The Globe reports that Philadelphia Fed president Anna Paulson said Thursday, "Returning inflation to 2 per cent is a top priority, and I will support the policy path that gets us there while carefully weighing risks to the labour market." She said, "If conditions evolve as I expect, some modest further tightening may be warranted." New York Fed president John Williams also suggested Thursday that tighter monetary policy is coming. Citing Fed policy-maker projections released last week that pencilled in a rate increase, he said "it's likely that another rate hike may be appropriate by the end of the year. That seems to me a reasonable way of thinking about it." In contrast to the Fed projections for one more rate hike in 2026, futures markets are braced for significantly more increases. Fed officials who spoke on Thursday said the central bank does not have much of a balancing act when setting policy relative to its job and inflation mandates. Noting that the economy is strong, they said there is space to focus on the inflation problem.