The Fed minutes showed that at its last meeting, several members made the case for cutting rates in July, though that ultimately did not happen but that the “vast majority” saw a September cut as appropriate.
Fed rate cuts loom: Several Fed members considered tightening in July
Federal Reserve
As it became known on this day The latest minutes of the Federal Reserve (Fed) in which several officials acknowledged that There were plausible arguments for cutting interest rates. The meeting was between July 30th and 31st before the central bank’s policy committee voted unanimously to keep them stable.
The FOMC is thus pointing to a possible reduction in interest rates, depending on economic data. In the minutes of July 30-31, most members indicated that it would be appropriate to ease monetary policy if the data continue to show the expected results.
“Several noted that recent developments in inflation and increases in the unemployment rate had provided a plausible argument for reducing the target range by 25 basis points at this meeting or who could have supported such a decision,” the minutes of the meeting stated.
And they added: “The vast majority observed that, If the data continued to come in as expected, it would probably be appropriate to relax policy at the next meeting.“.
It should be noted that in July, despite these recommendations, the Federal Open Market Committeeresponsible for setting the monetary policy of the Fedthat meeting ended leaving its reference interest rate for overnight loans in the range of 5.25% – 5.50%.
Back then, Federal Reserve Chairman Jerome Powell, in his post-meeting press conference, said, “If we were to see inflation coming down, roughly in line with expectations, growth remaining reasonably strong, and the labor market remaining consistent with current conditions, So I think a rate cut could be on the table at the September meeting.“.
Source: Ambito
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