#FOMCMinutes
The Federal Reserve’s July meeting saw Governors Michelle Bowman and Christopher Waller dissent, pushing for rate cuts to protect a weakening job market. Upcoming minutes could show if other policymakers shared their view.
Labor data released shortly after the meeting validated their concerns, with July job growth far below expectations, unemployment rising, and prior job gains revised down by over 250,000. President Trump reacted by firing the Bureau of Labor Statistics chief.
However, inflation concerns remain due to Trump’s tariff policies, as consumer and producer prices rose faster than expected in July. This has kept some policymakers cautious about cutting rates too soon.
Markets now see an 85% chance of a September rate cut, but the minutes may feel outdated since they predate the weak labor data. Attention is turning to Fed Chair Jerome Powell’s speech at Jackson Hole, which may signal whether he supports cuts or stays focused on inflation risks.
Meanwhile, Trump has criticized Powell for not lowering rates and is considering replacements when Powell’s term ends next May. He has already nominated Stephen Miran to fill a vacant Fed Board seat.