Minutes from the U.S. Federal Reserve’s July meeting showed that several officials leaned toward raising interest rates last month, while many said policy may need to be tightened further if inflation does not move lower. The Federal Open Market Committee, or FOMC, voted 9-3 to keep the benchmark rate unchanged at 3.5% to 3.75% at the July meeting. Logan, Hammack and Kashkari dissented and preferred a 25 basis point increase. Two regional Fed presidents who were not voting members in July, Schmid and Musalem, later said they also would have supported a hike had they been able to vote. The minutes said uncertainty continued to weigh heavily on officials’ judgment, and participants repeated that their reading of incoming data would remain a key part of policy discussions. Much of the meeting’s debate focused on differing views over the path of inflation. According to the minutes, most participants expected inflation to ease gradually over the rest of the year as the effects of tariffs and earlier energy price increases fade, though many also said the risk of inflation staying elevated remained present.
Minutes from the U.S. Federal Reserve’s July meeting showed that several officials leaned toward a rate hike last month, and many said monetary policy may need to be tightened further if inflation does not decline.
At the same time, uncertainty continued to weigh heavily on policymakers’ judgment at the July meeting. The minutes said: 「Regarding the outlook for monetary policy, participants reiterated that their interpretation of incoming data would be a key component of policy discussions.」
FOMC held rates steady in July
The Federal Open Market Committee voted 9-3 in July to keep the benchmark rate in a 3.5% to 3.75% range.
Logan, Hammack and Kashkari dissented, favoring a 25 basis point increase. Two regional Fed presidents who did not have voting rights in July, Schmid and Musalem, later said that if they had been able to vote, they would have supported a hike at that meeting as well.
Inflation outlook drove most of the debate
Most of the policy discussion at the July meeting centered on differing views about the future path of inflation. The minutes said: 「Most participants expected inflation to gradually move lower over the remainder of the year as the effects of tariffs and earlier energy price increases fade, but many participants noted that the possibility remains that inflation could stay at a higher level.」
The item was published by Odaily, citing Jin10.
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