FOMC Minutes Suggest Divided Committee on Inflation Prospects
The Federal Reserve's latest minutes have painted a mixed picture of the US economy. The FOMC meeting highlighted the deep divisions within the committee regarding inflation prospects, with 'many' policymakers believing further tightening is necessary if prices don't subside.
Core inflation indicators remain high, and inflation expectations are at levels not seen since before the Iran war. Those advocating for a rate hike argue it would prevent more severe measures down the line, while opponents believe a pause would allow for better assessment of the situation.
In other news, Poland's wage growth accelerated to 6.8% in July, exceeding expectations. Producer price inflation and industrial production also beat forecasts, suggesting supply-shock-driven inflation may translate into demand-driven factors.