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Fed minutes highlight supply risks to inflation as dollar gains
FXStreet notes most FOMC participants leaned toward policy firming if supply side shocks from oil and tariffs lift inflation, even with a stable labor market.
TD Securities strategists, as summarized by FXStreet, said the June Federal Open Market Committee minutes flagged growing concern that inflation risks are rising despite a stable US labor market.
They noted that while some participants saw room for a June hike, most favored holding rates, but signaled willingness to pursue further policy firming if supply side shocks push inflation higher.
The minutes pointed to potential inflation pressures tied to factors including higher oil prices, tariffs, and supply chain disruptions, as well as AI, according to the TD Securities discussion.
FXStreet also tied the outlook to currency moves, saying geopolitical tensions in the Middle East supported the US dollar and kept EUR/USD consolidation near the end of the North American session.
The coverage added that gold staged a rebound after a three day losing streak, underscoring how inflation and higher rate expectations continue to influence broader markets.
Latest closeGold $4,023.80 ▼1.2%|EUR/USD 1.139 ▼0.1%