Citi downplays the hawkish nature of the meeting minutes, and J.P. Morgan is concerned about the differences in inflation within the Federal Reserve

Comparative news. According to Kim Ju's report, at the July meeting, three Federal Reserve officials voted against the decision to keep interest rates unchanged. They believe that the Federal Reserve should raise interest rates because the core inflation rate was still as high as 2.6% at the time, which is significantly higher than the Fed's 2% target. But the data released in August is weakening their reasons for supporting interest rate hikes. The July CPI report showed that after excluding volatile food and energy prices, core prices rose 2.5% year over year, the lowest level since March 2021. Meanwhile, the July employment report showed that the US lost 23,000 jobs in the month. Andrew Hollenhorst, the US chief economist at Citigroup Research, said that these data will make it difficult for the minutes of the meeting to drastically change the market's currently reduced probability expectations of interest rate hikes.

However, the minutes of the meeting will show more clearly the extent of the differences between eagles and pigeons within the Federal Reserve during the July meeting. The minutes of the meeting may reveal how officials will define and assess inflationary pressures in the future. Michael Ferrori, chief US economist at J.P. Morgan Chase, wrote that the minutes of the meeting may give us an idea of how much the other FOMC members actually tolerate higher than target inflation.