Fed Warns Rates May Rise Unless Inflation Improves Significantly

Federal Reserve officials indicated that interest rates would likely need to rise unless inflation improves, according to minutes from the central bank's July meeting.

The minutes revealed that 'many' participants believed a rate hike would be necessary if inflation did not decline, while others acknowledged the uncertainty surrounding inflation projections.

Three regional Federal Reserve presidents dissented in favor of a quarter-point interest rate hike, citing concerns that raising rates could prevent the central bank from having to hike rates more aggressively later.