Policymakers at the US central bank are growing increasingly concerned about lagging inflation rates.
Many policymakers are worried that the slow pick-up in price increases may be due to long-term trends, not just short-term factors. They urged that “some patience” guide the Fed as it considers plans to raise interest rates.
Many analysts expect the Federal Reserve to raise interest rates once more this year but several members said their willingness to take action would depend on incoming economic data. A few said a rise should be deferred until it was clear that inflation trends were on pace to hit the Fed’s 2% target.
“All agreed that they would closely monitor and assess incoming data before making any further adjustment to the federal funds rate,” they said.