The minutes of the Fed’s July meeting, released Wednesday, don’t read like the playbook of a central bank serenely steering the economy toward a soft landing. The minutes don’t name names, but it isn’t hard to connect dots from sentences like this: “A couple of participants suggested that tariff effects were masking the underlying trend of inflation and, setting aside those effects, inflation was close to target.” That line might as well have carried Bowman and Waller’s initials. They rest on the view that tariffs are less likely to unanchor expectations than to create temporary noise in the data, while a cooling labor market is the real risk worth guarding against.
Author: John Carney, John Carney
Published at: 2025-08-20 22:45:38
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