Inflation Outlook and Policy Divergence

Federal Reserve officials generally hope that the recent high inflation is just a "temporary phenomenon," but from the latest meeting minutes, inflation and tariff risks remain important considerations for policy decisions. Some officials have rarely voted for a rate cut, indicating dissent regarding the maintenance of the current high interest rate path.

Meanwhile, although inflation has eased somewhat, employment data remains unstable, especially the addition of only 73,000 jobs in July, far below expectations, further increasing the space for discussions on rate cuts.