Fed Officials Weigh Another Rate Hike Amid Renewed Inflation Risks

The Federal Reserve is facing growing pressure to raise interest rates again as officials weigh renewed inflation risks from the Middle East conflict and other factors.

More than five consecutive years of above-target inflation has exposed a divide within the central bank, with some arguing that another rate increase may be necessary rather than waiting for inflation to cool.

The decision to hold rates steady at 3.5% to 3.75% was unusually fraught, with three regional bank presidents dissenting in favor of an increase - the first time this has happened in 10 years.

Lorie Logan, Dallas Fed president and one of the dissenting votes, called for increasing rates in a mid-July speech, while Beth Hammack, Cleveland Fed president, wrote that inflation is unduly high and 'isn't coming from only one source, it's broad based.'

Fed chair Kevin Warsh has committed to restoring price stability after more than half a decade of above-target inflation, but has delayed action for at least another eight weeks.