. FED DIVIDED ON INTEREST RATE CUTS AMID INFLATION AND PRESSURE FROM PRESIDENT TRUMP.

.Minutes from the June 17–18 meeting show Federal Reserve officials sharply divided on the extent of rate cuts

.Some are concerned about inflation due to tariffs

.Others focus on weak economic growth and a slowing labor market.

.All members agreed to keep rates unchanged in June, but many believe rate cuts should begin this year, as inflation from tariffs may be temporary and mild.

.Opinions split into three groups:
1- A few want cuts starting in July
2- Some argue against cuts this year
3- Others suggest only slight cuts, as rates are near neutral. The .Fed expects two rate cuts in 2025, with three more in subsequent years

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