Fed Policymakers Worry About Inflation as Rate Hikes Loom
US Federal Reserve policymakers are increasingly concerned about inflation, according to minutes from their July meeting. Several participants favored raising interest rates, and many agreed that tightening monetary policy would be necessary if inflation doesn't decline to the Fed's 2% target.
The minutes show that three policymakers dissented in favor of a quarter-percentage point hike at the meeting. They argued that price pressures are broad-based and that the Committee should adopt a more restrictive policy stance to meet its commitment to achieving price stability and maximum employment goals on a sustained basis.
Failure to do so, they warned, would risk 'a steeper and potentially more costly sequence of tightening moves at a later stage.'