<ul><li>Interest rates might have to rise to higher levels to slow the economy</li><li>It would make sense to slow the pace of rate hikes next year to 0.25% increments</li><li>But the real challenge is on the dangers of prematurely ending rate hikes</li><li>We have a lot of work to do</li><li><a target=“_blank“ href=“https://www.wsj.com/amp/articles/bringing-inflation-down-without-a-recession-might-not-be-feasible-fed-official-says-11668571133″ target=“_blank“ rel=“nofollow“>Full interview</a></li></ul><p style=““ class=“text-align-justify“>Taking her other remarks into context, it is not as dovish as it sounds. But what is clear is that Fed policymakers are already looking towards this and that is reason enough for markets to keep with the play from last week – especially if <a target=“_blank“ href=“https://www.forexlive.com/terms/e/economic-data/“ target=“_blank“ id=“ed1b62b3-5e5b-4a70-82dc-4a13e98beda8_1″ class=“terms__main-term“>economic data</a> continues to vindicate such an outlook.</p>

This article was written by Justin Low at forexlive.com.