While the majority predicted rates cut this year, there were even some monetary policy responsible for 2025 for the inflationary risk of the commercial war.
Only “a pair” of Federal Reserve officials (FED) said at the last meeting that they felt that interest rates could go down in July, as the US President Donald Trump wants. On the contrary, most were concerned about the inflationary pressure expected by the commercial war.
Trump has demanded immediate cuts and has asked for the resignation of the president of the Fed, Jerome Powell. However, the participants of the Meeting held between June 17 and 18they generally agreed that, “With economic growth and a labor market still solid and a moderate or modestly restrictive monetary policy, the North American Central Bank was well in good position to wait for the perspectives of inflation and economic activity to be clarified. “
Divided opinions on rates, within the Fed
“A couple of participants said that if the data evolves in line with their forecasts, they would be open to reduce the objective range of the official interest rate already at the next meeting,” explained the document published on Wednesday. In parallel, the minutes indicated, “Seven (19) members considered that the most successful path was not to reduce the types this year Since the latest inflation data had continued to exceed the 2%objective, that the upward risks for inflation remained important due to the high short -term inflation expectations of companies and homes, or because they expected the economy to remain strong. “
In this way, although Many of those responsible for monetary policy highlighted the convenience of cutting the rates this yearthe perspectives were very divided. “A few participants considered that the risks to the labor market had become predominant,” the minutes said.
The document covered the deliberations in the Federal Open Market Committee of the Agency, in which officials voted unanimously In favor of maintaining the reference interest rate in the range of 4.25%-4.50%established in December.
The members of the Committee gave an account of the “considerable uncertainty” existing on the calendar, magnitude and duration of the impact of trade levies on inflation, although they recognized that this lack of certainty “had fallen with respect to the previous meeting.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
