Fed Likely To Continue Rate Hike Until Inflation Cools, Minutes Say

US Federal Reserve officials assessed that an interest rate hike would be appropriate until inflation = eases significantly, according to minutes released Wednesday from its last meeting.

"With inflation remaining well above the Committee's objective, participants judged that moving to a restrictive stance of policy was required to meet the Committee's legislative mandate to promote maximum employment and price stability," minutes from the July 26-27 meeting showed.

The Fed hiked its benchmark interest rate by 75 basis points for a second straight month, the fastest pace of tightening in four decades.

The central bank judged that slowing the pace of the policy rate would likely become appropriate at some point, it said.

"Some participants indicated that, once the policy rate had reached a sufficiently restrictive level, it likely would be appropriate to maintain that level for some time to ensure that inflation was firmly on a path back to 2%," it noted. -