Lates News

"Wall Street Journal" reporter Nick Timiraos said that the minutes of the June Federal Reserve meeting showed that the main disagreements among officials came from different assessments of future economic trends rather than fundamental conflicts in the strategy of raising or lowering interest rates. Two possible scenarios have emerged within the Federal Reserve: if inflation continues to remain high, almost all officials believe that higher interest rates need to be maintained or even further policy tightening; but if inflation quickly falls back to the target level of 2%, almost all officials believe that current interest rates can be maintained or even lowered in the future. He believes that the phrase "quickly fall back to 2%" is very important as it allows the Federal Reserve to retain policy adjustment space. Currently, officials are truly concerned about whether inflation will continue to rebound or re-enter a downward trajectory. Timiraos concluded that the Federal Reserve's next move still depends on economic data, especially inflation performance. The market had previously bet on a rate cut, but the latest minutes show that there is still considerable uncertainty in the policy outlook.