Some US rate setters are backing away from the Federal Reserve’s reluctance to lower borrowing costs even though many were still worried about inflation risks, according to minutes from the central bank’s July meeting.
An account of the Fed’s July 29-30 policy deliberations showed that, while some rate-setters still wanted to see what they could glean from data released in the coming months, others thought they may need to make a call on whether or not to lower borrowing costs sooner than that.
The central bank has kept its benchmark federal funds target range on hold at 4.25-4.5 per cent this year, amid concerns that tariffs imposed by the White House on US imports could stoke another wave of inflation.
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