Fed Officials Warn of Inflation Risks with No Rate Hike

Three Federal Reserve officials dissented against leaving interest rates unchanged at this week's policy meeting. They believe that without an immediate increase in short-term borrowing costs, inflation will remain above the Fed's 2% target.

This target has been breached for more than five years, and the dissenters are worried that further delay will exacerbate the issue. One of them expressed concern that if interest rates do not rise soon, inflation will continue to be stuck above its target.

A fourth Fed official shares their concerns about tighter policy but thinks it may be acceptable to wait for a bit longer, given June's relatively low inflation reading.