FOMC minutes indicate uncertainty about inflation

According to the Federal Open Market Committee’s most recent meeting minutes, members believe inflation will ease as the effects of tariffs and earlier energy price increases fade; several noted that elevated inflation may be more persistent.

At the July meeting, the FOMC voted to maintain the federal funds rate target range at 3.5%-3.75 %. Three members voted against the action, preferring to raise the rate instead. The minutes show that participants judged their inflation outlooks as “highly uncertain” and believed inflation risks were skewed to the upside.

The majority supported maintaining the current rate to wait for more economic information to clarify future policy action.