🔥 Inflation remains the number one concern
Most Fed officials believe that the risks from inflation are much more dangerous than a cooling labor market.
📈 New tariffs = Increased price pressure
The upcoming tax levels could force businesses to raise prices. But their effects won't be immediate; they'll linger.
😰 Fear of inflation expectations
The Fed is concerned that if the public believes inflation will be 'persistent', it will become a reality.
💥 The asset market poses hidden risks
A few members warn that valuations in many markets are 'too hot'.
👉 Conclusion: The Fed is still not ready to cut interest rates, as inflation remains a significant ghost.
But... 🧐 The market is different – investors still bet that in September the Fed will have to loosen.
