Fed Officials Eye Higher Rates as Inflation Fears Persist

The Federal Reserve may have to raise interest rates in the coming months if inflation persists, according to minutes from its July meeting.

Mining through the minutes, it's clear that many Fed officials believe higher rates are necessary if inflation doesn't decline. The central bank voted 9-3 at the July 28-29 meeting to keep its key rate unchanged at about 3.6%, but some policymakers think they may need to act soon.

New Fed chair Kevin Warsh's reluctance to provide clear guidance on future interest rates has also unnerved investors, who are now expecting the central bank to hold off on a rate hike until December.