MINUTES OF THE JULY FED MEETING

The minutes of the July Fed meeting show a rare divide among policymakers. The majority agreed to keep interest rates at 4.25%–4.5%, but two governors voted to cut rates immediately. This is the first time in over 30 years that more than one person has dissented.

The debate reflects the growing tensions within the Fed. Some members remain concerned about inflation, especially as President Trump's tariffs add to the uncertainty, while others argue that the labor market is weakening and fear rising unemployment. Economic growth is stagnating, new job creation is slowing, and consumer spending is declining, leading many to worry that the labor market could worsen further.

The minutes also emphasize that the Fed is facing a difficult trade-off. If rates are cut too early, the risk of an inflation outbreak will increase, but if they wait too long, the economy could fall into a deeper recession. All attention is now focused on the upcoming speech by Chairman Jerome Powell at the Jackson Hole conference this Friday, where he is expected to signal the Fed's next move after the latest job data has been revised downwards.