🔵 Fed Minutes - July Under the Microscope

• Most Fed officials see inflation as the biggest risk today, even if it comes at the expense of the labor market.

⬅️ The committee is divided over whether it will cause a "temporary jump" in prices or a "prolonged inflation shock."

• Interest rates remained between 4.25% and 4.5% amid an economic slowdown and greater uncertainty in the outlook.

• Some officials expressed concern about "high asset valuations" and the possibility of bubbles forming.

• The minutes were released ahead of Powell's much-anticipated speech, which could shape the next phase of interest rates.

⬅️ The bottom line: The Fed is caught between high inflation and slowing growth, while tariffs add further uncertainty... All eyes now turn to Powell's speech in Jackson Hole.