Federal Reserve (U.S. central bank) officials remained concerned at their July meeting about persistent inflation and the possibility of further rate increases if price pressures did not ease. Several policymakers said financial conditions might not have been restrictive enough, while others argued that tighter market conditions were already helping slow demand. A small group that supported raising rates immediately believed doing so could reduce the need for larger increases later. Officials generally viewed inflation risks as tilted to the upside, although some said financial markets were already contributing to the tightening needed to curb demand. Because the meeting occurred before subsequent data showed cooler employment and inflation, the minutes may overstate how much tightening markets currently expect.