Almost all Federal Reserve officials agreed at the June policy meeting that some monetary policy tightening would be “warranted” to restore 2 percent inflation, according to minutes released on July 8.
The central bank voted unanimously to leave interest rates unchanged in the target range of 3.5 percent to 3.75 percent at last month’s Federal Open Market Committee meeting.
Participants discussed various economic scenarios amid an environment of stable employment conditions, elevated inflation, tariff effects, and the Middle East conflict.
“In such scenarios, almost all of these participants indicated that some policy firming would likely be warranted to return inflation to 2 percent,” the minutes state….