Fed minutes show growing support for higher rates if inflation persists

Several Federal Reserve policymakers supported raising interest rates at the central bank’s July 28-29 meeting, while many others said higher borrowing costs could be necessary if inflation fails to return to the Fed’s 2% target.

The Fed held its benchmark rate at 3.50% to 3.75%, though three policymakers favored a quarter-point increase. Officials warned that delaying action could require steeper rate hikes later.

The minutes showed no discussion of supporting a rate cut. The Fed is expected to hold rates steady at its September meeting, while investors are pricing in possible hikes beginning as soon as late October.

Read the full story at New York Post.