Fed officials have long been unusually divided on the issue of interest rate cuts. The minutes of the July meeting, to be released today, will reveal just how deep this division runs.
The Fed minutes will be released today at 9:00 PM (UTC+3). Bitcoinsistemi.com will be providing all the information immediately.
At the Federal Open Market Committee (FOMC) meeting held on July 29-30, interest rates were held steady at 4.25%-4.5%. However, the decision was made with the opposition of two board members, the first in over 30 years. Michelle Bowman and Christopher Waller had previously announced their support for a quarter-point rate cut.
While statements from Fed officials since the meeting have varied in tone, most remain cautious, particularly regarding the impact of new tariffs on inflation. Conversely, many potential candidates to replace Jerome Powell have openly advocated for rate cuts, further fueling interest in the minutes.
Market expert Ed Yardeni commented, “The minutes may reveal how persistent the doves are and how rigid the hawks are.” Data released since then has complicated the picture. July employment data pointed to a slowdown in the labor market, while on the inflation front, consumer prices fell and producer costs rose.
Meanwhile, pressure from the White House to cut interest rates is growing. Treasury Secretary Scott Bessent argued that the rise in the producer price index was largely due to the surge in the stock market. Komal Sri-Kumar, President of Sri-Kumar Global Strategies, warned, “The risk of economic policies being influenced by political pressures is increasing.”
Fed officials have always emphasized that they steer clear of political debate and base their decisions solely on employment and price stability. However, the ongoing search for a new chairman has made maintaining this independence more difficult. “The Fed’s independence is based less on legal guarantees than on a shared understanding that monetary policy should be free from partisan influence,” Sri-Kumar said. “This norm is currently under significant pressure.”
*This is not investment advice.