Fed Debates Timing of Next Rate Hike Amid Persistent Inflation

Inflation remains elevated in August, with prices rising 3.4% compared to last year, while the economy continues to grow at a solid pace.

The Federal Reserve is now debating not whether to raise interest rates again, but when and how quickly to do so.

The Fed's dual mandate of maximum employment and price stability takes on new significance in light of an energy shock that has driven up fuel costs and contributed to inflation.

Fed officials point to the economy's steady growth, strong consumer spending, and a labor market with minimal layoffs as reasons to continue raising rates.