According to the FOMC Minutes, the two Federal Reserve policymakers who disagreed with the central bank's decision to keep interest rates the same last month were not joined by other policymakers in calling for lower rates at that meeting.

Key Quotes

Almost all participants at the Fed's July 29–30 meeting viewed it as appropriate to maintain the benchmark interest rate in the 4.25%–4.50% range.

Participants noted it would take time to have more clarity on the magnitude and persistence of higher tariffs' effects on inflation.

Participants assessed the impact of tariffs had become more apparent in goods prices, but overall effects on the economy and inflation remained to be seen.

A couple of participants highlighted the role of the standing repo facility in monetary policy implementation and expressed support for further study of central clearing of the srf.

Some participants said it would not be feasible or appropriate to wait for complete clarity on the tariffs' effects on inflation before adjusting monetary policy.

Several participants said the current target range for the federal funds rate may not be far above its neutral level.

Fed staff's real GDP projection for 2025 through 2027 was similar to the one prepared for the June meeting.

Participants said the consensus statement would be designed to be robust across a wide range of economic conditions.

Participants noted that the policy committee was close to finalizing changes to the consensus statement as part of the framework review.

Source : Fxstreet