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Fed minutes show hawkish hold as inflation persistence remains debated

The Summary of Economic Projections reflected an even split among FOMC members on whether to keep rates unchanged, cut, or raise them, tied to uncertainty over how long elevated inflation lasts.

Reported · Written up by our desk · Economy

FXStreet reports that notes from the June FOMC meeting highlighted a hawkish hold, with the Fed’s Summary of Economic Projections showing an even split between members who favored keeping rates unchanged or cutting and those who wanted to raise rates.

According to Societe Generale’s Jan Groen, the Fed is seeing inflation as still too high and the labor market as durably stable, but disagreement centers on the duration of elevated inflation.

That split in outlook, FXStreet notes, is driving the different policy rate preferences among Committee members.

The piece also points to how Fed guidance may become less predictable for traders as the market weighs the implications of the divided rate outlook.

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