Philadelphia Fed President Anna Paulson said on Thursday that she and her colleagues may need to raise interest rates further to bring inflation back to target levels. In prepared remarks for a fintech conference, she noted that despite some easing of price pressures over the summer, core inflation is still running at around 2.5%-3%, well above the 2% target, with little sign of the gap narrowing. Paulson's comments come as market expectations for the Federal Reserve's tightening policy have risen sharply, with long-term Treasury yields climbing to their highest levels since 2004.