ASPEN, Colo. (Reuters) - The U.S. Federal Reserve must be ready to take action if slowing economic growth fails to curb inflation stemming from higher food and energy prices, two top Fed policy-makers said on Tuesday, indicating that higher interest rates may be needed.Richard Fisher, president of the Dallas Fed, and Jeffrey Lacker, president of the Richmond Fed, both of whom are known for their hawkish stances on inflation, warned that vigilance on price pressures is necessary even as oil prices have come off their peaks.
"Until we have a clear sense of what will prevail, monetary policy-makers must remain poised to act if slowing growth fails to contain inflationary pressures," said Fisher said.
Fisher is a voting member of the policy-setting Federal Open Market Committee this year and has dissented at every meeting so far in favor either of higher rates, or of less aggressive easing. He said is "very comfortable" with his a reputation as one of the most anti-inflation Fed officials.
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