Forex
Fed Policymakers Eye Rate Hikes as Inflation Persists
US Federal Reserve policymakers believe interest rate hikes may be necessary if inflation does not decline, according to minutes from their July meeting.
The majority of the Fed's 12 voting members agree that policy tightening will likely be needed if prices do not drop. However, three of them - Beth Hammack, Lorie Logan, and Neel Kashkari - dissented, calling for an immediate 25-basis-point hike in rates.
The Fed has struggled to meet its long-term inflation target of two percent for over five years, with households suffering from high prices. Despite some easing of interest rates from their pandemic peak, the Fed paused rate cuts in January amid uncertainty sparked by US President Donald Trump's policies.