Federal Reserve minutes show no signals of rate cuts

Odaily News The Federal Reserve's meeting minutes did not mention any views supporting rate cuts, indicating a significant shift in the Fed's policy discussions over the past year. At the beginning of last year, the market had expected that as inflation slowed, the Fed would be able to lower borrowing costs this year.

However, price pressures have continued to build, especially after the Trump administration joined Israel's war against Iran. Nearly six months have passed since the conflict erupted, and oil and gas shipments through the strategic Strait of Hormuz remain constrained.

Recent data has shown a slight cooling in inflation, while companies unexpectedly cut jobs in July, leading the market to expect the Fed to hold its policy rate steady again at its September 15-16 meeting. These data points have left Fed officials divided over whether rate hikes are needed to further curb inflation, while at the same time, officials have become more cautious about the strength of the labor market and the risks to achieving their full employment goal. As Warsh has been reluctant to discuss his own monetary policy path, the market lacks clear guidance from the Fed chair. (Jinshi)