Fed Says Higher Rates Possible

Federal Reserve officials agreed that higher interest rates may still be necessary even as they held the benchmark rate at 5.25% last month, according to minutes of the meeting released Wednesday.

“Further policy firming might prove necessary to foster lower inflation,” the Fed minutes stated.

The minutes suggested policy makers were more concerned about inflation and low-growth risks than at their previous meeting in January, Bloomberg reported.

The minutes made no mention of a possible rate cut, which some analysts have said may be necessary later this year, Bloomberg said.

The Fed left the benchmark interest rate in place for the sixth straight time at its March 20-21 meeting.