Federal Reserve Officials Warn of Rate Hikes If Inflation Persists: Minutes

Tighter financial conditions could result in deteriorating household finances, higher unemployment, participants say.

Federal Reserve Bank Chair Jerome Powell announces that interest rates will remain unchanged during a news conference at the Federal Reserve's William McChesney Martin building in Washington on June 12, 2024. Kevin Dietsch/Getty Images

Federal Reserve officials warned at the June policy meeting that if inflation remained elevated or continued to rise, policymakers might need to raise interest rates, according to minutes from the meeting released on Wednesday.

Officials noted that they are not ready to cut interest rates until they have obtained “greater confidence” that the inflation rate is heading toward the central bank’s 2 percent goal.