Fed's Barkin and Collins foresee slower rate hikes.

By The Exchange Team

By The Exchange Team

Two Federal Reserve officials said on Friday that they expect interest rates to rise further.

By The Exchange Team

They will, however, consider whether those moves need to be as aggressive as they have been this year.

Thomas Barkin of Richmond and Susan Collins said the Fed will examine how much more restrictive policy ought to be.

Barkin told CNBC that rate hikes had caused the Fed to move its foot from the gas pedal to the brake.

Policymakers will "pump the brakes sometimes" and "act a little bit more defensively" in this new phase, he has said.

Barkin said the fed funds rate, a benchmark for short-term borrowing, might rise over 5% from its current range of 3.75%-4%.

Friday's market pricing increased to a potential "terminal rate" of 5.14%, the highest level since mid-2007.