Bank says more hikes needed to curb costs

The Federal Reserve said that further interest-rate hikes would be required to restore price stability.

“The committee is strongly committed to returning inflation to its 2 percent objective,” the Fed said in its semiannual report to Congress released Friday. Officials expect that “ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive.”

The Fed report, which provides lawmakers with an update on economic and financial developments and monetary policy, was published on the central bank’s website ahead of Chair Jerome H. Powell’s testimony before the Senate Banking panel on Tuesday and the House Financial Services Committee a day later.