Federal Reserve minutes August 2025

The minutes issued on Wednesday showed that federal reserve officials are concerned about their meeting in July about the status of the labor market and inflation, although most of them agreed that it was too early to reduce interest rates.

The summary of the meeting depicts a difference in opinion between central bankers, whose vote to retain their fixed main price despite the objections from two conservatives who have flavored the Federal Reserve who argued in favor of the pieces.

Political makers pointed to the increasing threats of the economy that would require monitoring, although they have agreed greatly that their current position is the appropriate way to go.

“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,” I noticed the minutes. While “the majority of the participants sentenced the bullish risk of inflation because the greater risk of” the couple saw “the risks of the downside to employ the most prominent risks.”

Conservatives Christopher, Er, Michelle Bowman voted against the decision to retain fixed rates, preferred instead that the Federal Open Market Committee begins to reduce its main rate. The average federal reserve bank has been targeted, which determines what banks have been charged for overnight, but it is used as a standard for other consumer rates, between 4.25 % -4.5 % since December.

This was the first time that many conservatives voted against a modified decision for more than 30 years.

president Donald TrumpThe customs tariff was a major part of the discussion.

“With regard to the upheaval risks to inflation, the participants pointed to the unconfirmed effects of definitions and the possibility of inflation to become unpopular,” the minutes said. The document also noted “the great uncertainty about the timing, size and continuing effects of increased definitions this year.”

When he reaches an increasingly hot political background, the meeting witnessed that officials express different opinions about the place where they see the economy and politics. Employee evaluation saw that economic growth is “lukewarm” in the first half of the year, although unemployment remained low.

Many participants have expressed uncertainty about the impact of definitions on inflation, while others concerned that the image of jobs began to show cracks and will need an increase in policy to prevent further damage.

The summary said: “The participants noticed that the committee may face difficult bars if the high inflation proves that it is more stable, while the expectations for the labor market were set.” Prices -related decisions depend on “the distance of each variable from the goal of the committee and the various time prospects that are likely to be expected to close these concerned gaps.”

The meeting came just two days before the issuance of a publication statistics that showed that the growth of the inconsistent salaries not only remained weak in July, but also witnessed a much weaker growth of what was mentioned originally.

Even without that information on hand, federal reserve officials noted that “the negative risks of the work process have increased useful with the slowdown in the growth of economic activity and the spending on the consumer, and that some of the data received indicates twice the conditions of the labor market.”

The minutes were released two days before the main event to study the Federal Reserve this week: Chair Jerome Powell His main speech delivers on Friday morning during the annual symposium of the Central Bank of Jackson Hall and Wyoming.

Powell is expected to use the letter to refer to at least a short -term trend of rates in terms of rates in addition to a long -term vision of politics.

Trump has practiced fierce political pressure on the Federal Reserve to reduce prices. President Powell has retreated as “stupid”, “loser” and other edges with criticism of the Board of Directors as well.

With the resignation earlier this month from the Governor Adriana Kogler, Trump will receive other candidates in the seat. The validity of the Powell state as president in May 2026, although he could remain as a ruler if he desires his desire until 2028. In the last wrinkles, Trump demanded the resignation of the ruler Lisa Cook Amid the claims It committed the mortgage fraud regarding federal loans that it received on real estate in Georgia and Michigan.

In the case of Powell seat, Select the White House 11 potential candidates, including many current Federal Reserve officials with economists and Wall Street strategies.

Correction: This article has been updated to correct Adriana Kugler.