Fed Policymakers Ponder Rate Hikes as Inflation Concerns Mount

Concern about inflation deepened at the Federal Reserve's meeting last month as policymakers discussed potential rate hikes to combat rising prices. The minutes of the July 28-29 meeting showed that several members of the policy-setting Committee believed a more restrictive monetary policy stance was necessary to meet the central bank's goals.

The participants who favored a rate increase 'remarked that price pressures appeared broad-based' and argued that failure to hike would risk 'a steeper and potentially more costly sequence of tightening moves at a later stage.'

Despite recent data showing inflation easing slightly, policymakers remain divided on whether rate hikes are needed. The Federal Reserve is expected to hold its policy rate steady again at the upcoming September 15-16 meeting.