Fed steaming toward September rate cut, minutes from meeting show
WASHINGTON - The Federal Reserve appears to be very much on track for an interest rate cut in September after a"vast majority" of officials said such an action was likely, according to the minutes of the U.S. central bank's July 30-31 meeting.
At the July meeting, most policymakers thought that"if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting," the minutes said. Jamie Cox, managing partner at Harris Financial Group, said"the Fed minutes removed all doubt about a September rate cut." He added that"the Fed's communication strategy is to make its meetings less of a market-moving event, and they are following the script to the letter."
The minutes noted that officials see the job market as having largely returned to where it was before the COVID-19 pandemic started, and described the job market as"strong but not overheated." Those revisions may not have caught Fed officials off guard, with the minutes noting"reported payroll gains might be overstated," which means the economy might not need to add as many new positions each month to keep the jobless rate steady.
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