July FOMC Minutes Show No Support for Rate Cuts, Tilt Toward Possible Hike

Minutes from the Federal Reserve’s July Federal Open Market Committee meeting showed no support for an interest-rate cut.

The minutes, released on August 19, said several policymakers believed rates may need to rise if inflation does not slow sufficiently. At the July meeting, three officials dissented from the decision to keep rates unchanged, favoring a 0.25 percentage-point increase.

Still, inflation has eased slightly in recent months, and July employment unexpectedly declined. Markets are therefore placing greater weight on the possibility that the Fed will leave its benchmark rate unchanged again at its September 15-16 meeting.

Fed Chair Kevin Warsh has refrained from offering specific guidance on the future path of monetary policy, leaving uncertainty over the rate outlook intact.