Minutes from the Federal Reserve's latest policy meeting have revealed that numerous central bank officials are worried persistently elevated inflation could cement rapid price increases within the world's largest economy.

The minutes, released on Wednesday, show that "several" members of the Fed's policy-setting committee "highlighted the possibility that, after several years of inflation running above the 2% target, the elevated rate could begin to influence inflation expectations as well as corporate wage and pricing decisions."

US inflation has now exceeded the Fed's target for more than five consecutive years, fueling an ongoing debate over the issue. At the same time, President Trump's war against Iran has pushed up costs across the broader US economy once again.

Policymakers are now locked in intense deliberations over whether to raise borrowing costs in order to ease upward price pressures. At its July meeting, the Fed decided to hold US borrowing costs steady in a range of 3.5% to 3.75%—marking the fifth consecutive meeting without a change in monetary policy.

An inflation report released after the July meeting showed a slowdown in price gains, and as a result, market pricing currently implies only a one-in-four chance of a rate hike by the Fed before the end of 2026.

The decision to hold rates steady was backed by a majority of nine members, but three voters dissented: Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan, and Minneapolis Fed President Neel Kashkari, all of whom called for a 25-basis-point increase in borrowing costs.

Behind these calls for higher rates lies official concern that price pressures in the US are "broad-based," and not solely stemming from temporary factors such as Trump's import tariffs or the war in Iran. Some officials who favor a hike argue that acting sooner rather than later could reduce the likelihood of the Fed ultimately being forced to raise borrowing costs by a larger margin.

The minutes also reveal that other regional Fed presidents, who are members of the Federal Open Market Committee but do not have a vote this year, likewise supported a rate increase. Additionally, some committee members indicated they would back a September hike if price pressures persist.

"Several participants assessed that if inflation fails to recede, a policy tightening may become necessary," the minutes stated. The committee also "generally agreed that information accumulated over the intermeeting period would help clarify the inflation outlook, thereby reducing uncertainty."