The FOMC minutes reveal a hawkish monetary stance amid inflation risks tilted to the upside due to advances in artificial intelligence. Inflation remains above the Federal Reserve’s target, with the federal funds rate held between 3.50% and 3.75% and the effective rate around 3.63%. Headline CPI inflation stood at 3.4% year-over-year in July. Markets are now pricing in a reduced probability of rate cuts at the upcoming September and October FOMC meetings.
Source: Read the original article
