📕 Minutes from the last #Fed meeting: ❗️The Fed removed the hint of further monetary policy easing (rate cuts) from its statement. ▫️All Fed officials supported keeping the rate in the 3.50–3.75% range. The decision was unanimous (12–0). ▫️Inflation remains above the 2% target. The Fed attributes rising prices to tariffs, energy costs, the conflict in the Middle East, the closure of the Strait of Hormuz, and high demand driven by AI investments. ❗️Several Fed officials stated that there are arguments for raising rates, though they supported a pause at this meeting. ▫️Some Fed officials acknowledge the possibility of a rate hike if inflation remains high due to AI-driven demand, tariffs, or the conflict in the Middle East. ▫️The labor market remains stable. Unemployment has barely changed, and employment growth is roughly keeping pace with the growth of the labor force. ▫️The US economy continues to grow at a steady pace. Key drivers include consumer spending, a strong stock market, robust corporate profits, and AI investments. ❗️Some Fed officials believe the interest rate should remain at current levels or slightly lower by year-end. However, many others stated that the rate should be above the current range by the end of the year. ▫️The market has also revised its expectations: the base-case scenario is now no rate changes until early 2027, with only a single cut in the second quarter of 2027. At the same time, a possibility of a rate hike in mid-2027 has emerged.