Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

Federal reserve officials allocated how aggressive they would be to reduce interest rates at June meetings, and how aggressive they will be divided between tariff -fuel inflation and labor market weakness and economic power symptoms.

Minutes of the 17-18 June meeting, published on Wednesday, showed that policy makers have largely waiting and vision positions in future ratio movements. The meeting ended with unanimously voting for members of the Federal Open Market Committee to keep the Lock Borrowing rate of the Central Bank in a range of 4.25-4.5%since December 2024.

However, the summary also showed an increasing division of how policy should move out of here.

Authorities, as the authorities saw the tariff -based inflation prints potentially “temporary and humble”, “Most participants evaluated that this year would be appropriate to reduce some decrease in the target range for the federal fund rate.” He said.

Nevertheless, it was a matter of discussion how much the outages could progress.

The opinions changed from a “couple” official who said that the next section could come to “some” that could not come to “some” who did not think of any discount this year as soon as possible this month. Although the minutes did not mention the names, the governors Michelle Bowman and Christopher Waller entered the records by saying that they could see the ways to cut the rates at the 29-30 July feeding meeting if inflation is under control.

At the same time, the “several” officials said they thought that the fund ratio may not be far from a neutral level over an existing night, so only a few interruptions may be ahead. These authorities mentioned inflation over 2% in the midst of a “flexible” economy.

In the Fed glow, some are more than a few people.

At the meeting, the authorities updated their estimates for the ratio interruptions and waited three more years for two more years this year. However, the “dot graph” of individual members’ perspectives reflected the division according to interruption.

Release comes as President Donald Trump increases the pressure on the Fed chair Jerome Powell and his cohort. In public statements and the truth on the social site Trump, Powell, who continued to call his resignation.

Powell has repeatedly said that he would not submit to political pressure on determining monetary policy. Mostly, with a strong economy and uncertainty against inflation, he joined the careful approach, insisting that the FED was in a good position to stay on hold until he had more knowledge.

Minutes greatly reflect the stance in which policy is currently a good position to respond to changes in data.

“The participants acknowledged that it is appropriate to adopt a careful approach to adjusting the monetary policy, despite the decrease in uncertainty about inflation and economic appearance.”

Authorities also, “high inflation is proved to be more permanent, the employment appearance weakens will face difficult compromises,” he said. In this case, they said that they would weigh which side was more than the goal of formulating policy.

Since the meeting, Trump has continued negotiations with US trade partners, where Ground has always changed nearly. Trump initially announced the tariffs on April 2, and then changed the deadline for agreements and marked a series of letters to foreign leaders who reported them if they did not move.

The latest data show that Trump’s tariffs are not fed at least in large prices.

The consumer price index increased only 0.1% in May. Although inflation indicators are still over 2% of the FED, the latest sensitivity research shows that the public is less frightening.

Minutes, “Many participants, companies can quickly adjust the supply chains or use other adjustment margins to reduce the effects of tariffs,” many participants said the final effect of inflation on inflation may be more limited. “

At the same time, work gains have slowed significantly, but the ratio of non -agricultural payroll growth has constantly surprised economists. June, an increase of consensus for 110,000, increased by 147,000, while the unemployment rate unexpectedly fell to 4.1%.

Consumer expenditures slowed down significantly. Personal expenditures decreased by 0.1% in May, while retail sales decreased by 0.9%.