Most Federal Reserve officials last month still regarded high inflation as an ongoing threat that could require further interest rate increases, according to the minutes of their July 25-26 meeting. At the same time, the officials saw “a number of tentative signs that inflation pressures could be abating.” It was a mixed view that echoed Chair Jerome Powell’s noncommittal stance about future rate hikes at a news conference after the meeting. According to the minutes, the Fed’s policymakers also said that despite signs of progress on inflation, it remained well above their 2% target. They “would need to see more data ... to be confident that inflation pressures were abating” and on track to return to their target.
