Federal Reserve officials signaled in their recently released meeting minutes that additional interest rate increases are expected to combat inflation. The central bank is closely monitoring economic indicators to determine the appropriate course of action. This suggests a continued tightening of monetary policy in the near term.

Participants observed that core inflation had been elevated and that inflation expectations needed to be closely watched. Most participants judged that some further policy firming might well be needed to keep inflation pressures contained. However, they also reiterated that the extent and timing of any additional firming would depend importantly on the implications of incoming data for both inflation and economic growth.