Fed minutes show inflation risks dominated July outlook discussion

Federal Reserve minutes released on Aug. 19 showed the central bank held rates steady at its July meeting while inflation risks dominated discussions on the economic outlook. According to the minutes, many officials maintained that a rate hike could be needed if inflation does not cool further. The minutes also noted the meeting took place before the release of July inflation and employment data. Since then, the latest data has shown slower July inflation and a weaker labor market, and traders have lowered expectations for a September rate hike. Additional inflation and employment data is also due before the Fed’s next meeting.