-
Fed minutes could show whether Waller and Bowman had company in favoring rate cuts soon
Last month's decision by the U.S. Federal Reserve to hold interest rates unchanged prompted dissents from two top central bankers who wanted to lower rates to guard against further weakening of the job market, and a readout of that two-day gathering on Wednesday could show whether their concerns had started to resonate with other policymakers, perhaps reinforcing expectations that borrowing-cost reductions could begin next month. Not even 48 hours after the conclusion of the July 29-30 Federal Open Market Committee meeting, data from the Labor Department appeared to validate the concerns of Fed Vice Chair for ... (full story)
- Comments / Top
- Subscribe
Vancarbon
Aug 20, 2025 4:20am
—
Edited
Permalink
ocd
Aug 20, 2025 8:07am
Permalink
BaliBoyz80
Aug 20, 2025 5:11am
Permalink
Trader#952C
Aug 20, 2025 6:49am
Permalink
Trader#584F
Aug 20, 2025 5:21am
Permalink
Trader#584F
Aug 20, 2025 7:25am
Permalink
Trader#B552
Aug 20, 2025 8:06am
Permalink
Trader#82C0
Aug 20, 2025 9:07am
Permalink
-
Related Stories
Participants continued their discussion related to the ongoing review of the Federal Reserve's monetary policy strategy, tools, and communication practices (framework review). They observed that they had made important progress toward revising the Committee's Statement on Longer-Run Goals and Monetary Policy Strategy (consensus statement). Participants discussed potential revisions to the consensus statement that would incorporate lessons learned from economic developments since the 2020 framework review and would be designed to be robust across a wide range of economic conditions. Participants noted that the Committee was close to finalizing changes to the consensus statement and would do so in the near future. The manager turned first to a review of financial market developments. Over the intermeeting period, the expected path of the policy rate and longer-term Treasury yields were little changed, equity prices increased, credit spreads narrowed, and the dollar depreciated slightly. The manager noted that markets continued to be attentive to news related to trade policy, though markets' reaction to incoming information on this topic was more restrained than in April and May. Against this backdrop, the manager reported that the Open Market Desk's Survey of Market Expectations (Desk survey) indicated that the median respondent's expectations regarding both real gross domestic product (GDP) growth and inflation were roughly unchanged. *FED: MANY NOTED FULL EFFECT OF TARIFFS COULD TAKE SOME TIME *FED: SEVERAL NOTED CONCERNS ABOUT ELEVATED ASSET VALUATIONS *FED: MAJORITY SAW INFLATION RISK OUTWEIGHING EMPLOYMENT RISK Fed Minutes: Some participants said it would not be feasible or appropriate to wait for complete clarity on the tariffs' effects on inflation before adjusting monetary policy. Fed Minutes: Several participants said that the current target range for the federal funds rate may not be far above its neutral level.
Markets in the United States and around the world are anxiously awaiting the resumption of the Federal Reserves rate-cutting cycle, which began with a 50-basis-point cut in September 2024, but ended in December after two more 25-bps cuts. Gold traders are particularly eager to see lower rates, as the easing of the trade tariff premium has left precious ...