Most U.S. Federal Reserve policy makers continue to expect inflation to decline gradually as the economy cools, according to the September 20 Federal Open Market Committee Meeting minutes released today.

Recent drops in energy prices and signs of slowing economic activity, along with slightly lower core inflation readings, pointed to a “modestly better inflation outlook and hence made the policy decision today somewhat less difficult than it was in August, when it was seen as a particularly close call,” the minutes said.

At its September meeting, the Fed held the benchmark federal funds rate steady at 5.25% for the second-straight time.

According to the minutes, “many participants also noted that core inflation had been running at an undesirably high rate.”

“Although most participants expected core inflation to decline gradually, substantial uncertainty attended this outlook,” the minutes said.

Most participants at the meeting indicated that risks remain tilted towards higher inflation. Uncertainties around their forecast for a gradual reduction in inflation “were skewed toward higher rather than lower inflation rates,” the minutes said.

“Many meeting participants emphasized that they continued to be quite concerned about the outlook for inflation,” and they underscored “the importance of ensuring a moderation in inflation.”