Fed Officials Mull Higher Interest Rates Amid Persistent Inflation Fears

The US Federal Reserve officials are considering raising interest rates if inflation remains high. The minutes of the Fed's meeting in July, released on Wednesday, showed that many policymakers think higher rates will be necessary to combat inflation.

Only 12 of the 19 policymakers vote on the outcome, and they voted 9-3 at the meeting to keep their key rate unchanged at about 3.6 per cent. However, officials were heavily focused on the threat of stubbornly elevated inflation at last month's meeting.

'Participants judged that their inflation outlooks were highly uncertain and that inflation risks were skewed to the upside,' the minutes said. 'Many participants assessed that (higher rates) would likely be necessary if inflation did not decline.'