Fed official affirms fighting inflation

The Baltimore Sun reports that the Fed will keep raising rates:

Chicago Federal Reserve Bank President Michael Moskow threw water on speculation that the Fed might be considering pausing its program of interest-rate increases to give the economy a breather from Hurricane Katrina's economic damage.

In a speech yesterday to the Chicago division of the Futures Industry Association, Moskow emphasized the need to suppress growing inflationary pressures in the U.S. economy. His comments represented the first formal remarks by a Federal Reserve official since the extent of Katrina's devastation came into focus.


"Putting it all together, I'm concerned about core inflation running at the upper end of the range that I feel is consistent with price stability," Moskow told the audience at the Union League Club.

The next FOMC meeting is September 20.