Key Facts
• July 29-30 FOMC meeting minutes released on August 20, 2025.
• Policy rate held steady for the fifth consecutive meeting.
• Some participants supported rate cuts before tariff impact clarity.
• Vice Chair Bowman and Governor Waller advocated a 0.25% rate cut.
• Majority believed tariff effects on prices would take time to materialize.
• Most participants prioritized inflation risks over employment risks.
• Only two participants emphasized employment and consumption risks over inflation.
• July U.S. jobs report showed downward revisions for May and June employment growth.
• Labor market cooling may have influenced participants’ views post-report.
• Fed Chair Powell to speak at Jackson Hole on August 22, 2025.
Summary
The Federal Reserve released the minutes of its July 29-30 FOMC meeting, revealing a decision to maintain the policy rate for the fifth consecutive session. However, some members, including Vice Chair Bowman and Governor Waller, supported a 0.25% rate cut, arguing adjustments should not wait for tariff impact clarity. While most participants prioritized inflation risks, a minority highlighted employment and consumption concerns. The July U.S. jobs report, released two days after the meeting, indicated a cooling labor market, potentially influencing participants’ views. Fed Chair Powell’s upcoming speech at the Jackson Hole conference is expected to address labor market conditions and rate cut considerations.
