Federal Reserve Watch for Aug. 20: FOMC Minutes Indicate Divisions Among Participants Despite Majority Call for Patience

02:50 PM EDT, 08/20/2025 (MT Newswires) -- The minutes of the July 29-30 Federal Open Market Committee meeting showed divisions forming between those that see inflation as the greater concern, those that see risks higher for employment growth and those that see a balance.

While most agreed that monetary policy was well positioned to wait a little longer to gain more evidence regarding the impact of tariffs on inflation, some suggested that it was not necessary to gain full clarity before adjusting policy. The meeting ended two days before the downward adjustment to recent payrolls growth was released.

Fed Governor Christopher Waller (voter) said that stablecoins and artificial intelligence can be used with traditional payment systems without replacing those legacy systems, adding that the use of stablecoins can extend the reach of the US dollar.

Recent comments of note:

(Aug. 19) Fed Vice Chair for Supervision Michelle Bowman (voter) told Bloomberg in an interview that she still believes that a rate reduction at the July 29-30 FOMC meeting was appropriate and stands by her dissent at that meeting.

(Aug. 14) St. Louis Fed President Alberto Musalem (voter) said in an interview with CNBC that it is too early to promise a rate cut at the Sept. 16-17 FOMC meeting but said that he believes that a 50-basis rate cut that some are hoping for is not justifiable in the current economic environment and outlook for economy. Musalem, speaking after the release of much-stronger-than-expected July producer price inflation data, said that tariff price impacts are just beginning to be seen and that while he expects to see those effects to fade in six-to-nine months, they may also be more persistent.

(Aug. 13) Atlanta Fed President Raphael Bostic (nonvoter) noted the weakness seen in the July employment data and noted that lower-income consumers and small businesses are beginning to feel the impact of tariffs. Bostic said that unemployment remains low.

(Aug. 13) Chicago Fed President Austan Goolsbee (voter) said that tariffs-related price pressures have begun to be seen in the available data, adding that the effects may not be transitory.

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