Trump official criticizes Fed chief Powell
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The emerging divide among Federal Reserve officials over the outlook for interest rates is being driven largely by differing expectations for how tariffs might affect inflation, a record of policymakers’ most recent meeting showed.
The minutes reveal more closely the behind closed doors thinking between the U.S.’ top policymakers with the Fed under barrage from the White House.
Minutes from the Fed’s June policy meeting tease at a looming split over whether and when officials will resume rate cuts.
The Fed’s median target rate is still well above the annual pace of consumer inflation. The odds are low that Fed will cut rates at the upcoming July 30 policy announcement. Read more here.
Here’s how President Trump can take on the Fed’s refusal to cut rates: Have the Treasury issue bonds in gold, providing a simple metric to show if the dollar’s value is being undermined or maintained.
Cost of living continues to be a major issue for consumers, but some states are handling inflation better than others: America’s cheapest states to live in.
Fed policy actions contradict its stated rule to focus on the mandate most out of balance, undermining credibility and inflation expectations. By delaying decisive action on inflation, the Fed risks higher future inflation, interest rates, and unemployment, making its current strategy dangerous.
Americans' outlook on inflation was little changed last month as households upgraded their views on the state of their finances and ability to get credit, according to a report released on Tuesday by the New York Federal Reserve.