Fed minutes August 2025

Federal reserve officials were worried about the labor market and the situation of inflation at the July meetings, but most of the minutes, most of them on Wednesday, admitted that it was too early to reduce interest rates.
The summary of the meeting, the vote of keeping the lock rates constant, despite the objections of the two Fed governors discussing in favor of cutting.

Although policy makers have largely accepted that their current stance is an appropriate way, the threats that require monitoring to the economy have increased.

“Participants often pointed to the risks against both sides of the committee’s bilateral duty and emphasized the risk of inflation and employment risk.” “The majority of the participants saw the risk of inflation, which was greater than these two risks, a pair of” a pair of “more pronounced risk risks.”

The governors Christopher Waller and Michelle Bowman chose to decrease the lock rate of the Federal Open Market Committee and voted against the decision to keep the rates fixed. The ratio of FED funds, which is used as a criterion for other consumer rates, has been targeted between 4.25-4.5% since December.

This voted against more than one governor’s first decision of the activity decision for more than 30 years.

President Donald Trump’s tariffs were a central part of the discussion.

“Regarding the upward risks for inflation, the participants pointed out the uncertain effects of tariffs and the possibility of inflation expectations remain unlikely.” “There is an important uncertainty about the timing, size and permanence of the effects of the increase in this year’s tariffs.”

The meeting, which was increasingly overheated by a political ground, found that the authorities expressed changing views on where they see the economy and politics. A personnel assessment, despite the low unemployment, saw economic growth in the first half of the year as “warm”.

While various participants expressed uncertainty about the impact of tariffs on inflation, others were worried that the picture picture began to show cracks and would need a policy increase to prevent further damage.

“Participants, if high inflation is proven to be more permanent, if it is proven to be more permanent from the point of view of the labor market, the committee may face difficult compromises,” he said. He said. Decisions regarding the rates will depend on the “distance of each variable to the target of the committee and the potentially different time horizons that are expected to close these gaps”.

The meeting arrived only two days before the publication of a Statistical Office, which shows that the non -Farm payroll growth was not only weak in July and that June and May has seen a much weaker growth than the reported.

Even without this information, the FED officials said that “the risk of disadvantage for employment has significantly increased with the slowing of the growth of economic activities and consumer expenditures, and some incoming data indicate the weakening of the labor market conditions”.

Minutes, this week was released two days before the main event for the Fed: President Jerome Powell, the Central Bank’s WYO, Jackson Hole during the annual symposium on Friday morning made the opening speech.

Powell is expected to use the conversation to express a longer -term view of a short -term direction and policy for the Fed for the Fed.

Trump imposed violent political pressure on the FED to reduce rates. The President discussed Powell as “stupid”, “losing” and other invasions, and at the same time criticizing the Board of Directors.

With the resignation of Governor Adriana Kugler at the beginning of this month, Trump will appoint one of his own candidates to the seat. Powell’s presidency ends in May 2026, but may remain as governor if he wishes until 2028. In the latest wrinkle, Trump demanded the resignation of Governor Lisa Cook, claiming that he had made a mortgage fraud about the federal loans he received for the properties in Georgia and Michigan.

In the case of the Powell seat, the White House, Economists and Wall Street strategists, together with several existing and 11 potential candidates, including officials fed in the past.

Correction: This article has been updated to correct the writing of Adriana Kugler’s name.