According to meeting minutes released on Wednesday, Federal Reserve policymakers raised concern about the rate of inflation at their most recent meeting and cautioned that additional rate hikes may be required in the future unless circumstances change.
Minutes of the Federal Open Market Committee July 25–26 meeting, which was just made public, reveal that while some members were eager to extend the pause in interest rate increases from June, others still see inflation as a problem and are prepared to raise rates further to prevent it.
The majority of participants "continued to see significant upside risks to inflation, which could require further tightening of monetary policy," according to the minutes.
Following a rate hike pause in June, the Fed increased its short-term benchmark fed funds rate by a quarter percentage point in July to a target range of 5.25% to 5.50%, the highest level in 22 years.
The next meeting of the FOMC will take place on September 19 and 20, 2023. Recently, several Fed officials have said that, while rate cuts are unlikely this year, rises might be coming to an end. John Williams of New York and Patrick Harker of Philadelphia, regional presidents, both stated last week that they could see a way to hold the line in this situation. According to CME Group data, market pricing is strongly indicating that there won't be any more price increases, with less than a 40% possibility of one being priced in by the end of the year.