Minutes from the Fed’s June 16–17 meeting show officials increasingly concerned
about high inf. A minority judged an immediate rate hike could be warranted, but
participants followed Fed chair KEVIN WARSH in issuing a shorter policy
statement and ultimately supported leaving the policy rate unchanged. The
minutes say a “majority of participants” saw scenarios in which inf would return
to the Fed’s 2% target and scenarios in which it would remain elevated; “almost
all” participants holding the latter view said hikes would be necessary if that
occurred. Participants generally judged incoming information between meetings
pointed to elevated upside risks to price stability and reduced downside risks
to full employment.
