Lecturer in July in July, offered the fears of introductory inflation, I kept the rates that have not changed

record Federal Reserve The July meeting on Wednesday showed that policy makers were more concerned about the risk of inflation than the impact of definitions from the labor market as they discussed the interest rate policy.

The FOOC Open Market Committee (FOMC), the Federal Reserve Committee responsible for monetary policy decisions, voted 9-2 to leave the rate of standard federal funds unchanged for the fifth consecutive meeting in the range of 4.25 % to 4.5 % in July.

This decision happened despite the first double opposition in favor Reduce rates Since 1993, conservatives Michel Bowman, Christopher Waller have supported a discount at the 25th point of Basis due to the risks they saw in the labor market.

“Participants generally pointed to risks on both sides of the double mandate of the committee, focusing on the upward risks on inflation and negative risks to employment,” said FOMC report. “The majority of the participants have ruled the upper risk of inflation as the largest of these risks, while many participants view the risks as almost balanced, and two participants were considered a danger on the negative side of the employment whenever the most prominent danger.”

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FOMC’s minutes noticed that “many participants” noticed that inflation remained above the long target of the 2 % Federal Reserve.

“Participants have become more clear in the data, as shown in the recent increases in Cargo prices enlargedWhile inflation in services prices continued to slow down. Two participants suggested that the effects of customs tariffs were hiding the primary direction of inflation, and setting the effects of the tariff aside, the inflation was close to the target. “

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Federal politicians also discussed inflation expectations, most of whom are expected to rise in the short term – although there is “a state of great uncertainty about the timing, size and continuing effects of increased definitions this year.”

“In terms of timing, many participants noticed that it might take some time for full effects A higher tariff To feel the prices of consumer goods and services. ”

Among the reasons for the delay in transferring the costs of customs tariffs to the prices of consumers, “storing inventory in anticipation of high definitions; slow success in the cost of inputs to the prices of goods and final services; the gradual update of contract prices; maintenance of the company’s relevant relationships;

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The last federal reserve meeting occurred before the weakest expected Job report in JulyWhich showed that only 73,000 jobs – less than 110,000 estimates for the economists included in LSEG – along with the firm reviews of 258,000 jobs in May and June.

This report will be issued, in addition to more current inflation data and the labor market that will be issued between now and the next meeting of FOMC from September 16 to 17, whether the FBI rates are reduced by 25 points as expected by the market.

“The inflation is still in the front fireplace of federal reserve officials as the customs tariff is still risking the economy and receiving in inflation,” said Eric Tell, the chief investment official of Comeica Wealth Management.

“The rate of effective tariffs on imports increased to about 16 % in August from 11 % of last month, as the majority was set to land on consumers. The labor market is still a land card, but higher frequency data has not yet proven the concerns created by the Jobs Jobs report.”

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“Participants pointed to risks on both sides of the double mandate of the committee, focusing on upward risks on inflation and negative risks to employment,” Ryan Sowet, chief American economist in Oxford’s economy.

Sweet said: “The key is that most of the participants view the risk that they are almost balanced, and two participants were considered risks on the negative side of employment as more prominent risks.” “It is not clear whether the July employment report and the reviews to the previous months, which were issued after the July meeting, changes some opinions of the risk balance.”