Fed Eyes Higher Rates as Inflation Persists Amid Low Layoffs

The Federal Reserve is considering raising interest rates if inflation persists. According to minutes of the Fed's July meeting, many officials think higher rates will be necessary to control inflation.

The minutes showed that while 9-3 votes kept the key rate unchanged at about 3.6%, some policymakers believe it may need to rise in the coming months. The decision on interest rates could have significant implications for mortgage holders and borrowers, as well as the broader economy.

In other economic news, unemployment claims fell last week, indicating that layoffs remain low and job security remains strong. The Labor Department reported that 206,000 people applied for unemployment benefits, down from a revised 212,000 the previous week.