Fed official Paulson: Given high inflation, further "gradual" rate hikes are appropriate.

Fed's Paulson says monetary policy needs to be "somewhat restrictive." The exact path of interest rate policy depends on how the economy evolves. Given high inflation, further "gradual" rate hikes are appropriate. Gradual hikes also give Fed officials room to assess the impact. Risks to the inflation outlook are high. The economy is stronger than expected, and the job market is solid. The Fed still has "more work to do" in bringing down inflation.