Members of the Federal Open Market Committee decided to leave the federal funds rate unchanged as uncertainty about economic activity and price pressures made “the timing and magnitude of future policy actions … quite unclear,” according to minutes of the June 24-25 meeting.

The members generally agreed “risks to growth had diminished somewhat” while “upside risks to inflation had increased” but “the risks to growth remained tilted to the downside.”

“Conditions in some financial markets had improved, but many financial institutions continued to experience significant credit losses and balance sheet pressures, and in these circumstances credit availability was likely to remain constrained for some time,” the minutes said.

Members expect the next move to be an increase in rates, with one member believing urging the board to agree to such a policy at that meeting.

“Members recognized that circumstances could change quickly and noted that they might need to respond promptly to incoming information about the evolution of risks,” the minutes state.

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