The Globe and Mail reports in its Tuesday, April 7, edition that Federal Reserve Bank of Cleveland president Beth Hammack said Monday an interest rate increase might be appropriate if inflation stays persistently above the Fed's 2-per-cent target, indicating that some policy-makers are shifting away from a bias to lower borrowing costs. An Associated Press dispatch to The Globe reports that Ms. Hammack said her general preference is for the Fed keep its benchmark interest rate unchanged "for quite some time." She also said the Fed might have to cut its rate if higher gas prices caused the economy to slow and unemployment to rise. But if inflation remained elevated, a rate hike could be needed, she said. She said: "I can foresee scenarios where we would need to reduce rates if the labour market deteriorates significantly. Or I could see where we might need to raise rates if inflation stays persistently above our target." Ms. Hammack's comments suggest a growing concern among at least some policy-makers that inflation, which was elevated before the Iran war, may require rate hikes to tame further. Rate increases by the Fed would be a sharp shift from late last year, when the central bank cut its key rate three times.