"Fed sounding board": fed officials hint at no rush to cut rates

Some policymakers at last month's meeting called for close attention to signs that the job market may be weakening faster than expected, as rising inflation has left Fed officials not confident enough to cut rates, according to "Fed sounding board" Nick Timiraos. 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, declining corporate pricing power and increased consumer sensitivity to price increases, to support their expectation that inflation will continue to decline in the coming year. The minutes showed that officials were broadly satisfied with their wait-and-see stance on interest rate changes and highlighted a range of ideas that could prompt the Fed to raise or lower interest rates. Combined with recent public statements by Fed officials, the minutes suggest they are unlikely to cut rates at their meeting later this month.