US EditionDivided Fed worried about tariffs, inflation and the labor market, minutes show
Federal Reserve officials expressed concern that tariffs are increasing goods prices, but overall economic and inflation impacts remain uncertain, with 2 dissenters favoring rate cuts to protect jobs.
- At their July 29-30 meeting, Federal Open Market Committee participants recorded near consensus on holding the federal funds target range at 4.25% to 4.50%, with two officials dissenting for a quarter-point cut.
- Tariff-Related price effects have contributed to stalled disinflation and considerable uncertainty remains about the timing and magnitude of this year's tariff impacts.
- Job and price data indicated a large downward revision erased more than a quarter jobs, while underlying consumer inflation accelerated and Producer Price Index surged in July.
- Participants warned they may face difficult trade-offs if inflation persists while the job market outlook weakens, as the minutes arrived two days before Fed Chair Jerome Powell's Jackson Hole economic symposium speech.
- Officials also discussed that a majority of participants judged upside inflation risk greater than downside employment risk, raising concerns about longer-term inflation expectations.
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72 Articles
US Fed minutes: Most officials worried about inflation
WASHINGTON, United States — Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged. According to the minutes of the July 29-30 meeting, released Wednesday, members of the Fed’s interest-rate setting committee
Fed minutes show tariff inflation fears outweighed jobs market in July rate decision
The minutes of the Federal Reserve's July meeting released on Wednesday showed that policymakers were more concerned about the risk of inflation from the impact of tariffs than the labor market as they debated interest rate policy.The Federal Open Market Committee (FOMC), the Fed panel responsible for monetary policy decisions, voted 9-2 to leave the benchmark federal funds rate unchanged for the fifth straight meeting at a range of 4.25% to 4.5…
Federal Reserve Says Clarity on Tariffs Will ‘Take Some Time’
It’s going to take a while to sort out the impact of President Donald Trump’s tariffs on inflation, so members of the Federal Reserve board are not in unity on whether it’s time to introduce a rate cut, minutes from the July policy meeting indicate. Fed officials were divided at last month’s Federal Open Market Committee (FOMC) meeting over tariffs and the state of the inflation and labor markets. Policymakers maintained the benchmark federal f…
The Mexican peso presented corrections against the dollar, after the publication of the minutes of the Federal Reserve (Fed), despite the fact that they revealed that FOMC members still perceive risks for inflation in the United States in the long term.On Wednesday, the Mexican currency recorded an appreciation of 0.33 percent or 6.14 cents, considering yesterday's closing data; the exchange rate was 18.75 pesos per dollar, according to data fro…
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