The Globe and Mail reports in its Thursday, Aug. 20, edition that many Federal Reserve officials believe the central bank may need to raise its key short-term interest rate in the coming months if inflation persists, according to minutes from the July 28-29 meeting. An Associated Press dispatch to The Globe reports that the minutes do not specify how many of the 19 officials supported higher rates. Only 12 of them vote, and the officials voted 9-3 to keep the key rate unchanged at 3.6 per cent. Inflation is showing signs of cooling, but gas prices have risen due to the Iran war. Wall Street expects the Fed to stay on hold at its September meeting, with potential rate hikes in December, though this outlook may change. At last month's meeting, Fed officials expressed concern about persistent inflation, citing the Iran war, tariffs, and significant investment in AI infrastructure as factors driving up prices. The minutes said participants rated their inflation outlooks as highly uncertain, with risks skewed upward. Many believed that higher rates might be needed if inflation does not decrease. Some Fed officials noted that underlying inflation remains elevated even when excluding prices affected by tariffs and energy.