Newly released minutes of the last US Federal Reserve policy meeting show most participants indicated more rate hikes could be required, citing upside risks to inflation.

The Fed on Wednesday released the minutes of the July meeting, when policymakers decided to raise the key rate by 25 basis points after pausing hikes in June. That brought the Fed's policy rate to the highest level since 2001.

The minutes say that with inflation still well above the Fed's longer-run goal and the labor market remaining tight, "most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy."

Staff economists reported that since the emergence of stress in the banking sector in March, indicators of spending and real activity had come in stronger than anticipated. They said they no longer judged that the economy would enter a mild recession toward the end of the year.

The minutes show Fed officials were wary of inflation accelerating again amid steady economic data.

Market players are focusing on what Fed Chair Jerome Powell will say about an additional rate hike in his speech at an annual symposium scheduled for late August.