Fed July minutes show more officials backing rate hikes as Warsh seeks fewer policy meetings

The Federal Reserve’s July meeting minutes showed that several officials wanted rates higher if inflation does not keep moving back toward the central bank’s 2% target, arguing that the Fed should avoid being forced into a larger and more expensive tightening later. The minutes did not show a single official backing a rate cut. The hawkish tone was broader this time, with some non-voting participants also leaning toward higher rates. Separately, Fed Chair Warsh proposed reducing the number of annual policy meetings from eight to six. Any such change would not take effect until 2027 at the earliest. On the labor side, July nonfarm payrolls fell by 230,000. The report said market expectations for a hike may now be pushed back to the October meeting, or even December.