Fed Minutes Reveal Split Vote Among Policymakers Over Interest Rates

The Federal Reserve's July minutes are set to be released on August 19, providing insight into the split vote among policymakers over interest rates.

At the July FOMC meeting, three out of twelve members voted for a rate hike, indicating hawkish thinking and a lack of full agreement. This has shifted market expectations since July's strong rate hike expectations have fallen sharply from 65% to 35%, with the CME FedWatch tool showing only a 35% probability of a rate hike next month.

The decline in rate hike expectations is largely due to weaker jobs data, which reduces pressure on the Fed to raise rates. Raising interest rates could push up inflation, which remains above the US Fed's 2% target.