Fed officials hint at no rush to cut rates

Nick Timiraos, the "Fed mouthpiece," said that as rising inflation has made Fed officials lack sufficient confidence in rate cuts, some policymakers called for close attention at last month's meeting for signs that the job market may be weakening faster than expected. The minutes of the Fed's June meeting showed that "several participants said that monetary policy should be ready to respond to unexpected economic weakness." Officials also cited several economic developments, including slower wage growth, reduced corporate pricing power, and increased consumer sensitivity to price increases, to support their expectations that inflation will continue to fall over the coming year. The minutes showed that officials were generally satisfied with their wait-and-see stance on interest rate changes and highlighted a range of views that could prompt the Fed to raise or lower interest rates. Combined with recent public statements by Fed officials, the minutes suggest that they are unlikely to cut interest rates at their meeting later this month.