FOMC Minutes Reveal Regime Change at the Fed

The minutes of the July FOMC meeting reveal a discrepancy between Chair Kevin Warsh's explanation and the Committee's record.

According to the minutes, most Fed officials believed inflation would step down over the rest of the year as energy supply disruptions and tariffs wane, justifying the decision to hold rates unchanged.

This contradicts Warsh's press conference statement, where he downplayed the June CPI print and said 'not much' reliance on data was placed in making the decision.

The minutes also show that officials anticipated inflation would step down over the rest of the year, with the June data providing evidence for this thesis.