Federal Reserve policymakers broadly agreed that “some policy firming would likely be warranted” if inflation remained elevated as price pressures dominated Kevin Warsh’s first meeting in charge of the US central bank.
Minutes of the June discussion, released on Wednesday, showed that many members of the rate-setting Federal Open Market Committee remained worried the central bank would struggle to bring inflation back to its 2 per cent target.
Most of those present pointed to potential scenarios in which the labour market remained stable while AI-fuelled demand, the war in the Middle East and the effects of tariffs kept price pressures elevated.
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