Most Fed officials see a decrease in rates, but opinions are much different from how many minutes shows

Federal Reserve At their June meeting, officials disagreed about how aggressively they would be ready to reduce interest rates, breaking between the concern about inflation with the tariff and signs of the weakness of the labor market and economic force.

A few minutes from the meeting on June 17-18, published on Wednesday, they showed that politicians largely occupy the position of waiting and vision in the future steps. The meeting ended with members of the Federal Open Market, which unanimously voted for the maintenance of the Central Bank’s key borrowing from 4.25%-4.5%, where this happened since December 2024.

However, the resume also showed a growing gap on how the policy should pass.

“Most participants estimated that this year it would probably be a proper decrease in the target range for federal funds,” the protocol reads when officials saw the inflation pressure caused by the tariff as potentially “temporary and modest”, while economic growth and finding could weaken.

However, how far the cuts could pass was the issue of discussion.

The opinions ranged from the “couple” of officials who said that the next incision could come immediately this month so that “some” who thought that this year would not be appropriate. Although the protocols do not mention the names, Fed Governors Michel Bowman and Christopher Waller went to record, saying that they could see their way to speeding as soon as the Fed 29-30, when inflation remained under control.

At the same time, “several” officials said they believe that the current rate at night “could be near” from a neutral level, that is, there may be only a few cuts ahead. These officials referred to inflation, which is even higher than 2% of the target against the background of the “sustainable” economy.

In the Fed, some more than a few.

Officials at the meeting updated their forecasts to reduce the rate, waiting for two more years this year. However, the “point section” of individual members is viewed by the degree of reduction.

The release comes with the president Donald Trump Improving the pressure on the chair -stirred Jerom Powell And his cohort to cut aggressively. In public statements and on his truth, Trump’s social site took Powell, going to call for resignation.

Powell has repeatedly said that he would not bow to political pressure when it comes to creating a monetary policy. For the most part, he joined the cautious approach, insisting that with a strong economy and uncertainty over the Fed inflation is in a good position to remain content until it has more information.

The protocol largely reflects this position that policy currently has the ability to respond to data changes.

“The participants agreed that, although uncertainty in inflation and economic forecasts decreased, it remains appropriate to accept the attentive approach in the adjustment of the monetary policy,” the document reads.

Officials also noted that they “may face complex compromises if increased inflation will be more persistent and the forecast for work weakened.” In this case, they said they would weigh which side it was further from their goal in the development of politics.

Since the meeting, Trump has continued talks with key US trading partners, and the tariff land has been changing in almost a year. Trump initially announced the tariffs on April 2, and then changed the timing of the agreements, recently sending a number of letters to foreign leaders, informing them of their upcoming fees if they are not valid.

Recent data indicate that Trump’s tariffs did not file prices, at least on a large scale.

Consumer price index showed an increase of only 0.1% in May. While inflation sensors are still mostly above 2% of the Fed target, recent mood polls show that the public becomes less afraid of inflation on the road.

“Many participants have noted that the possible inflation tariff effect may be more limited if trade deals are reached soon when firms can quickly customize their supply chains, or if firms can use other margins to reduce the impact on tariffs,” the protocols said.

At the same time, the profit from work slowed down significantly, although the speed of growth of unconventional wages is invariably surprised by economists. June showed an increase by 147,000 compared to the 110,000 consensus forecast, while the unemployment rate unexpectedly decreased to 4.1%.

Consumer costs slowed down significantly. Personal costs decreased by 0.1%in May, and retail sales collapsed by 0.9%.