FOMC MINUTES: Most participants assessed higher rates would likely be necessary if inflation did not fall; Most participants at Fed's July 28-29 meeting supported keeping interest rates unchanged, but several favoured an increase

Various participants said tighter financial conditions over intermeeting period reflected strong economic growth and expectations for Fed to adopt more restrictive stance before long. A few of the participants who favoured raising rates at the meeting judged doing so would likely help forestall need for further hikes. Chairman Warsh said six scheduled meetings per year, held roughly every two months, would allow more information to accumulate between meetings. Almost all FOMC members agreed it was appropriate to retain policy statement affirming FOMC 'will deliver price stability'. No decisions were made on number of meetings and Warsh indicated no change to the 2026 schedule. Fed staff economic outlook showed inflation outlook was similar to one prepared for June meeting but economic outlook was 'a touch weaker'. Several participants said price increases over last year were broad based, spanning various categories of goods and services. A couple of participants noted ample-reserves regime had helped maintain orderly market functioning during brief payments outage during intermeeting period.