Federal Reserve policymakers said they continued to expect the U.S. economy to expand at an above-trend pace, prompting the need for further rate hikes, according to the minutes of the Fed's July meeting.
"Fed staff continued to project that the economy would expand at an above-trend pace," the minutes showed. "Members expected that further gradual increases in the target range for the federal funds rate would be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term."
In a sign of confidence on the strength of the U.S. economy, Fed policymakers raised their outlook on U.S. economy growth, citing stronger household spending.
"Relative to the forecast prepared for the June meeting, the projection for real GDP growth was revised up a little, primarily in response to stronger incoming data on household spending" .