Fed: Aggressive rate hikes not needed

Federal Reserve policy-makers were concerned about high energy prices stoking broader inflation in the United States when they met in early May, but did not believe they needed to raise short-term interest rates more aggressively to keep inflation in check, according to minutes of the meeting released tonight.

“Participants voiced concerns about recent price trends,” the minutes said. “They expected inflation to remain contained but also perceived that the risks to that inflation outlook now might be skewed somewhat to the upside.”