Fed minutes from the July meeting showed several officials leaned toward a rate
hike and many said policy would need to tighten further if inflation fails to
decline. Uncertainty remained high and participants emphasized that incoming
data will be central to policy decisions. The FOMC voted 9-3 to hold the policy
rate at 3.50%-3.75%; three dissents favored a 25bp increase, and two non-voting
regional presidents said they would have supported a hike. Most participants
expected inflation to ease this year as tariff and earlier energy-price effects
fade, but many flagged a material risk that inflation stays elevated.
