It’s going to take a while to sort out the impact of President Donald Trump’s tariffs on inflation, so members of the Federal Reserve board are not in unity on whether it’s time to introduce a rate cut, minutes from the July policy meeting indicate.
Fed officials were divided at last month’s Federal Open Market Committee (FOMC) meeting over tariffs and the state of the inflation and labor markets. Policymakers maintained the benchmark federal funds rate in a range of 4.25 percent to 4.5 percent for the fifth consecutive meeting.
Minutes from the July meeting, released on Aug. 20, suggested that while there are risks to the dual mandate—maximum employment and price stability—”a majority of participants judged the upside risk to inflation as the greater of these two risks.”…