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Most Fed Officials Still Wary About Cutting Rates Due to Tariff Uncertainty, Minutes Show

UNITED STATES, JUL 8 – The National Retail Federation warns tariffs and government policies are complicating retail forecasts as inflation may reach 3.4%, risking slower economic growth and higher unemployment.

  • The Federal Open Market Committee is releasing minutes from its June 17-18 meeting on Wednesday at 2 p.m. ET, focusing investor attention on monetary policy.
  • The meeting occurred before key events like the August 1 tariff threat by President Trump, leading to a divided Fed cautious about rate cuts due to tariff-driven uncertainty.
  • Despite steady interest rates of 4.25% to 4.5% since December 2024, some Fed officials appointed by Trump have expressed willingness to consider cuts, while most remain hesitant.
  • Trump imposed a 50% tariff on copper imports and threatened more levies, causing market disruptions and raising concerns that high Fed rates could harm a fragile labor market.
  • These dynamics suggest the Fed may wait for clearer inflation and employment data before adjusting rates, with investors eyeing potential cuts later in 2025 amid ongoing tariff effects.
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storebrands.com broke the news in on Tuesday, July 8, 2025.
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