Lates News

The extent of disagreement among Federal Reserve policymakers regarding the direction of interest rates and the severity of inflation will be revealed in the meeting minutes to be released early this morning. This document will depict the most severe internal disagreement within the Federal Reserve in recent meetings. There is a growing number of officials within the Federal Reserve who are cautious, fearing that inflation triggered by a war with Iran is keeping them guarded against any future rate cuts; while the number of those still in favor of rate cuts is dwindling. Powell has stated that he is open to "beneficial internal debate" and has also expressed support for rate cuts. A key point of interest in these meeting minutes will be the part that describes the debate within the Federal Open Market Committee (FOMC) regarding the monetary policy outlook. Deutsche Bank analysts note that despite taking into account the solid April jobs report and last week's higher-than-expected inflation data, these minutes may seem somewhat outdated but they still help gauge how the camp advocating for a more neutral forward guidance is evolving. It is important to point out that three officials voted against the slightly dovish forward guidance wording in the April meeting statement. Since that meeting, statements from Federal Reserve officials have shifted slightly towards a more hawkish stance.