The minutes from last month's meeting of the Federal Open Market Committee show policymakers at the Fed expecting more interest rate hikes to come.
The apparently see little evidence that inflation is slowing down.
U.S. stocks closed lower on Wednesday on the prospect of action by the Fed to slow down demand in the economy.
Lee Seung-jae reports.
According to minutes from the Fed policy meeting from July 26th to the 27th, Federal Reserve officials saw "little evidence" late last month that U.S. inflation pressures were easing, calling for more interest rate hikes moving forward.
While the minutes did not reveal how much of an increase they'll decide on, during their next rate-setting meeting from September 20th to the 21st, they did show that U.S. central bank policymakers were committed to raising rates as high as necessary to tame inflation.
Despite pressure to tame inflation, the minutes also highlighted important elements of what the Fed needs to consider in the coming months: when to slow down the pace of rate increases, and how to know if rate hikes have gone past the point needed to beat rising prices.
It hinted that the pace of rate increases could even ease as soon as next month, given the time needed to evaluate how tighter policy is affecting the economy.
During last month's meeting, Fed officials noted that while some parts of the economy, notably housing, had begun to slow under the weight of tighter monetary policy, the labor market remained strong and unemployment was at a near-record low.
Meanwhile, U.S. stocks tumbled on Wednesday with indexes volatile after investors thought minutes from the Federal Reserve's meeting in July suggested policymakers may be less aggressive than previously thought.
The Dow Jones Industrial Average fell point-five percent, while the tech-heavy NASDAQ shed one.two-five percent.
The S&P 500 also went down zero.seven-two percent.
Futures traders, who are tied to the Fed's policy rate, predict a half-percent point rate hike in September.
Lee Seung-jae, Arirang News.