Minutes show 9-3 vote to hold key rate at about 3.6%
Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, according to minutes of the Fed’s meeting last month that were released Wednesday.
The minutes of the July 28-29 meeting don’t provide specifics on how many of the 19 officials supported higher rates. Only 12 of the 19 policymakers vote on the outcome. At the meeting, officials voted 9-3 to keep their key rate unchanged at about 3.6%.
The release came during a week in which the economy, inflation and how those forces could impact the lives of Americans were front and center. Costs for groceries and gas have increased compared to last year, and rising costs are affecting the decisions of both households and businesses.
The minutes leave the central bank’s path contingent on the data ahead: many officials see a rate increase as necessary if price growth doesn’t cool in the coming months, even as the policy-setting panel chose to hold rates steady at its last meeting.