Fed's Moskow says rates have room to rise

Chicago Fed President Michael Moskow said on Wednesday the Federal Reserve can continue raising interest rates at a measured pace, but with less slack in the U.S. economy, it must be vigilant on inflation.

``Now that the expansion is solidly in place, the issue of inflation becomes increasingly important,'' Moskow, a voting member of the Fed's policy committee this year, said in prepared remarks to the Investment Analysts Society of Chicago.

``The current level of output is only modestly below

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