Fed Minutes Show Unanimous Support for Holding Rates Steady, Cite AI, Middle East and Tariffs as Inflation Risks
Forecast Trend Report by Period
All Federal Reserve meeting participants backed leaving interest rates unchanged, while expressing concern that rising investment in artificial intelligence, geopolitical risks in the Middle East and tariffs could stoke inflation.
Minutes released by the Fed on July 8 showed participants unanimously agreed to maintain the current target range for the benchmark interest rate. While some participants raised the possibility that a rate increase could be needed, they supported keeping rates unchanged at this meeting.
Most participants also judged that inflation could remain higher than expected because of AI-related demand, conflict in the Middle East and tariffs.
Nearly all participants said additional policy tightening could be necessary if price pressures persist.
