‘Many’ Fed officials think higher rates will be needed if inflation stays high
The logo of the Federal Reserve Board of Governors is seen before a news conference with Federal Reserve Board Chairman Kevin Warsh at the Federal Reserve in Washington, Wednesday, July 29, 2026. (AP Photo/Mark Schiefelbein) Federal Reserve Board Chairman Kevin Warsh speaks during a news conference at the Federal Reserve in Washington, Wednesday, July 29, 2026. (AP Photo/Mark Schiefelbein) WASHINGTON (AP) — Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed. The minutes of the July 28-29 meeting, released Wednesday , don’t provide specifics on how many of the 19 officials supported higher rates. Only 12 of the 19 policymakers vote on the outcome. Officials voted 9-3 at the meeting to keep their key rate unchanged at about 3.6%. Inflation has since showed some signs of cooling , though gas prices have rebounded this month on renewed hostilities in the Middle East.
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Excluding the volatile food and energy categories, so-called “core” prices have cooled, with annual core inflation falling to 2.5% in July, the government said last week , according to the consumer price index. The yield on 30-year bonds reached the highest level since 2007.
