16 August 2023
The minutes of the Federal Reserve’s policy meeting last month may indicate on Wednesday a growing uncertainty among policymakers about the U.S. economy’s trajectory. After a rate increase in July to 5.25%-5.50%, Fed Chair Jerome Powell hinted at more hikes, despite recognizing potential deflationary factors. However, the minutes will likely show divided opinions on the necessity of further hikes. Some Fed officials have since indicated no more hikes are needed, while others are considering potential rate cuts. The mixed messaging from the Fed indicates increasing concerns about the stability of the U.S. economy and potential over-tightening of monetary policy.