🟥 At the July meeting, Federal Reserve officials expressed concern about the slowing labor market and persistent inflationary pressures, but the majority believed it was too early to cut interest rates. The minutes revealed a clear division of opinion, with two committee members voting in favor of a rate cut, the first double dissent in more than 30 years.

⭕ Economic concerns included the impact of President Donald Trump's tariffs, which some participants viewed as a potential source of higher inflation. The minutes noted "significant uncertainty" about the timing, magnitude, and duration of these tariffs, further complicating the Fed's task of balancing price stability and supporting employment.

⭕ Although the unemployment rate remains low, recent labor market data has shown weak job growth, prompting some officials to warn of "increased risks to the employment side." The committee emphasized that any decision on interest rates will depend on the extent to which economic indicators deviate from their targets and the expected timeframe for correcting these gaps.

⭕ The meeting came ahead of Fed Chairman Jerome Powell's speech at the Jackson Hole Forum, where he is expected to outline the short- and long-term direction of monetary policy. Powell faces increasing political pressure from Trump, who has sharply criticized him and called for a rate cut to support his economic policies.

⭕ In light of Adriana Kugler's resignation, Trump is preparing to nominate a new member of the Federal Reserve Board, while also demanding the resignation of Lisa Cook over allegations related to mortgage lending. The White House is currently considering 11 potential candidates to replace Powell as Fed Chair after his term ends in May 2026, opening the door to radical changes in the direction of US monetary policy.