Fed minutes show many officials see rate hike if inflation persists

FOMC voted 9-3 to hold key rate at about 3.6 percent

The Federal Reserve on Wednesday released minutes from its July 28-29 meeting indicating that many of the central bank’s 19 officials believe a rate increase may be necessary in the coming months if inflation doesn’t subside. The minutes do not provide specifics on how many of the 19 policymakers supported higher rates.

At the meeting, the Federal Open Market Committee voted 9-3 to keep its key short-term interest rate unchanged at about 3.6%. Only 12 of the 19 Fed policymakers vote on rate decisions.

According to the minutes, officials were heavily focused on the threat of stubbornly elevated inflation at the meeting.

Inflation has shown some signs of cooling since the July meeting. Gas prices have rebounded this month on renewed hostilities in the Middle East.

Wall Street investors now expect the Fed to remain on hold at its September meeting and potentially lift rates in December, according to the Associated Press. The AP noted that this outlook could change.

The article was written by Christopher Rugaber of the Associated Press.