Fed Officials Eye Higher Rates as Inflation Persists

The Federal Reserve's July meeting minutes revealed that many officials believe higher interest rates will be necessary if inflation persists.

According to the minutes, released on Wednesday, Fed officials voted 9-3 to keep their key short-term rate unchanged at about 3.6% in July.

The minutes also showed that some Fed officials think a rate hike could come as soon as December, although investors expect the central bank to remain on hold until then.

Mortgage rates have eased slightly in recent weeks, with the average long-term U.S. mortgage rate falling to 6.65% from 6.67% last week, but remaining higher than this time last year.