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FOMC minutes show inflation stayed elevated, some officials favored hikes

The minutes also cited broad price increases across services and goods, while noting uncertainty tied to the Middle East conflict.

Reported · Written up by our desk · Central Banks

The Federal Open Market Committee published the minutes from its July meeting, with the document saying the information available at the time indicated inflation remained elevated. The minutes added that labor market conditions were stable and real gross domestic product continued to expand, according to FXStreet.

The minutes showed that most participants supported keeping interest rates unchanged, but several favored a hike. Participants judged higher rates would likely be necessary if inflation fails to decline, while a smaller group argued an immediate increase could help avoid additional rises later.

Fed participants said price increases over the past year were broad-based across services and goods, and they pointed to an inflation outlook broadly similar to a June-prepared forecast, though with a slightly weaker economic outlook, the minutes indicated. They also said near-term growth support included ongoing AI-related investment and household spending.

FXStreet reported that the US dollar faced selling pressure after the announcement, with the US Dollar Index trading around 98.90. The minutes also highlighted that uncertainty around the economic outlook remained elevated, in part due to the conflict in the Middle East.

Latest closeDollar index 99.64 ▼0.3%

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