Only a few Fed officials at the June 17–18 meeting suggested a potential rate cut in July, while most policymakers expressed concerns about inflationary pressures that could worsen due to the US administration's ambiguous policies, Reuters reports.
Earlier, Donald Trump demanded immediate, steep cuts, and called for Fed Chair Jerome Powell to resign. However, most Fed meeting participants believe no monetary policy easing is needed.
After the regulator released its June minutes, traders scaled back bets on a July 29–30 rate cut. Market participants noted that officials require clearer data on US inflation and economic trends first.
The Fed minutes show officials plan to stay cautious about adjusting monetary policy. Meanwhile, investors expect the first rate cut in September and a second one in December, Reuters notes.