Fed Officials Weigh Higher Rates Amid Ongoing Inflation Concerns

The US economy remains a hot topic as Federal Reserve officials weigh in on potential interest rate hikes. According to minutes from the Fed's July meeting, several officials believe higher rates are necessary if inflation continues to rise.

Inflation has shown some signs of cooling, but gas prices have rebounded due to renewed hostilities in the Middle East. As a result, Wall Street investors now expect the Fed to remain on hold at its next meeting in September and potentially lift rates in December.

The average long-term US mortgage rate eased for the second week in a row, falling to 6.65% from 6.67% last week. However, this rate remains higher than it was at the same time last year.

US unemployment claims dropped to 206,000 last week, another sign that layoffs remain low and most Americans enjoy job security. The four-week average of claims ticked up to 204,000 last week from 199,750.