More rate hikes 'likely' needed to lower inflation in the US: Fed official

A US central bank official said on Saturday that more interest rate hikes "will likely be needed" to bring inflation down further, shortly after policymakers lifted rates to the highest level since 2001.

Federal Reserve governor Michelle Bowman's prepared remarks to an event in Colorado also came after a mixed employment report on Friday showing that hiring in the United States has slowed but wage gains remained robust.

Bowman said she supported the policy-setting Federal Open Market Committee's (FOMC) decision for a rate hike in July given "strong economic data and still elevated inflation."

"I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC's two percent target," she added in her remarks.

On Friday, Labour Department data showed that the world's biggest economy added 187,000 jobs in July and 185,000 in June -- slowing from before.

But wage gains held steady at 0.4 per cent, and were 4.4 per cent higher than the same period a year ago in July.

Officials are expected to assess the labour market report for August, along with upcoming inflation readings, before making their next rate decision in late September.