"Fed megaphone": Fed officials suggest no rush to cut interest rates

Some policymakers at last month's meeting called for close attention to signs that the labour market could be weakening faster than expected as rising inflation left Fed officials feeling less confident about cutting interest rates, according to Nick Timiraos. "Several participants said monetary policy should be ready to deal with unexpected economic weakness," notes from the Fed's June meeting showed. Officials also cited several economic developments, including slower wage growth, declining pricing power for businesses and increased consumer sensitivity to rising prices, to support their expectations that inflation will continue to fall in the year ahead. Meeting notes showed that officials were broadly satisfied with their wait-and-see stance on interest rate changes and highlighted a range of views that could prompt the Fed to raise or cut rates. Combined with recent public statements by Fed officials, the meeting notes suggest they are unlikely to cut rates at their meeting later this month.