Overview

• The FOMC voted unanimously at its June meeting to keep the federal funds rate at 4.25%–4.50%, with only a couple of officials open to a cut in July.
• Minutes reveal all participants agreed new tariffs would exert upward price pressure, with views split on whether that effect will be temporary or persistent.
• Most policymakers signaled a preference to wait for clearer inflation and economic data, underscoring a lack of urgency for near-term rate reductions.
• Fed staff projects that tariffs will raise inflation this year and provide a modest boost in 2026, reinforcing cautious policy planning.
• President Trump stepped up public demands for rapid rate cuts on Truth Social, while Governor Christopher Waller contends tariff impacts are one-time and should be looked through.