Minutes of the Fed's policy meeting last month may be expected to show how many politicians feel the US central bank is done raising interest rates and whether the risks to the economy of the impact of aggressive monetary easing.
At the July 25-26 meeting, the Fed raised overnight interest rates to a range of 5.25%-5.50%, Jerome Powell also said in a press conference that this move would likely not be the last in a series of rate hikes beginning in March 2022 to address the surge the fastest inflation since the 1980s.
At the same time, Powell also said that the measures implemented are starting to bear fruit in lowering inflation, including improving the supply chain, moderate demand in labor demand, and tighter financing conditions.
Minutes of the meeting, which are expected to be released early Thursday morning, will likely show how confident the diverse group of Fed officials is in a continued decline in inflation, or whether a majority of them still feel that another rate hike is likely to be necessary, as many of them did in their last economic forecast in June.
An additional quarter-percent rate hike, either at the Fed's September 19-20 meeting or later in the year, would have a ripple effect in the macroeconomic impact, a small addition to 5.25 percentage points.
This will send an important signal to the bond and stock markets that are largely convinced that the central bank is done raising rates and now the Fed will start looking for the right moment to start cutting.
