Overview

• Minutes published July 9 confirm the FOMC’s June unanimous vote to hold the federal funds rate at 4.25–4.50 percent
• Meeting minutes expose a sharp rift with a pair of officials favoring immediate cuts, several opposing any reduction this year and most endorsing modest easing later
• A majority of officials warned that Trump’s tariffs could have persistent inflationary effects even as some saw their impact as temporary
• On July 9 President Trump escalated pressure by calling for a 300-basis-point rate reduction and demanding Chair Jerome Powell’s resignation
• Chair Jerome Powell pushed back against political interference, insisting rate decisions will follow economic data and noting that tariffs have constrained the Fed’s flexibility