Washington (AP) – Most Federal Reserve officials said last month The threat of increased inflation was a source of concern greater than the possibility of job losses, which prompted the central bank to maintain its main rate unchanged.
According to the July 29-30 meeting, which was issued on Wednesday, members of the Federal Reserve Preparation Committee “assessed that the effects of high definitions have become more clear in the prices of some commodities, but their total effects on economic activity and inflation have remained visible.”
The minutes confirmed the frequency between the majority of policy makers in the 19 Federal Reserve to reduce the short term of the central bank until they obtain a clearer feeling of the influence of President Donald Trump’s tariff on inflation. So far, inflation I infiltrated In the past two months, it has not increased as much as many economists feared when Trump revealed some of his duties.
The Federal Reserve left the main interest rate without change last month At about 4.3 %, although two members of the government board of directors have been opposed to price reduction. Both dissidents – Christopher, Wald, and Michelle Bowman – were appointed to the Board of Directors during the first period of Trump.
At a press conference after the meeting, President Jerome Powell indicated that it could take a great time to determine the federal reserve whether the Trump’s comprehensive tariff enhances inflation.
When the Federal Reserve changes its rate, it is often – And if not always – It affects the costs of borrowing for mortgages, auto loans and credit cards.
The Federal Reserve usually maintains or raises its rate, to cool borrowing, spending and anti -inflation. Its rate often reduces the economy and employment when cooling.
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