The Federal Reserve was concerned at a meeting about the continued high pace of inflation, predicting that further rate hikes may be necessary in the future unless conditions change.
The two-day meetings in July resulted in a quarter-point rate hike. The discussions showed that most members are concerned that the battle for inflation is far from over, and may require additional tightening measures from the Federal Open Market Committee, which sets interest rates.
With inflation remaining much higher in the long run and the labor market remaining tight, there is a view of significant upside risks to inflation, which may require further tightening of monetary policy.
Source (Al-Asharq Al-Awsat, Edited)
