The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.Many Fed officials think higher rates will be needed if inflation stays highMany Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed. The minutes of the July 28-29 meeting, released Wednesday, don’t provide specifics on how many of the 19 officials supported higher rates. Only 12 of the 19 policymakers vote on the outcome. Officials voted 9-3 at the meeting to keep their key rate unchanged at about 3.6%.
Inflation has since showed some signs of cooling, though gas prices have rebounded this month on renewed hostilities in the Middle East. Wall Street investors now expect the Fed to remain on hold at its next meeting in September and potentially lift rates in December, though that outlook could change.
