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LONDON (MarketWatch) -- Market expectations the U.S. Federal Reserve will hike its interest-rate target from 2% in August due to mounting inflation worries may reflect an overly aggressive wager, The Wall Street Journal reported Tuesday. The report said Fed officials want to demonstrate vigilance against inflation risks, while also giving the economy time to recover from troubles in the housing, labor and financial markets. The Fed's policy statement after its meeting next Tuesday and Wednesday is likely to carry stronger warnings about inflation risks than in May, but probably won't ratify market expectations for an August hike, the newspaper said.