Washington DC, Aug. 20 -- The US Federal Reserve could face growing pressure to raise interest rates in the coming months if inflation fails to moderate, with several policymakers warning that monetary policy may not yet be restrictive enough to bring inflation back to the 2 per cent target, according to the minutes of the Federal Open Market Committee's July 28-29 meeting.

The minutes indicated that most participants expected inflation to decline over the rest of 2026 as the effects of tariffs and earlier energy price increases fade. However, policymakers remained concerned that inflation could prove more persistent, particularly amid renewed geopolitical tensions, higher energy costs and strong demand associated with the artificial int...