UK Debt Leads Bond Rally as Traders Cast Aside Inflation Fears
The yield on UK 10-year debt fell five basis points to 4.69%, snapping a four-day advance that had lifted government borrowing costs to the highest since May. Yields are on track for the biggest decline in a month.
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Associated Press
2 minutes ago
- Associated Press
Fed minutes: Most officials worried about inflation moving higher
WASHINGTON (AP) — Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged. According to the minutes of the July 29-30 meeting, released Wednesday, members of the Fed's interest-rate setting committee 'assessed that the effects of higher tariffs had become more apparent in the prices of some goods but that their overall effects on economic activity and inflation remained to be seen.' The minutes underscored the reluctance among the majority of the Fed's 19 policymakers to reduce the central bank's short-term interest rate until they get a clearer sense of the impact of President Donald Trump's sweeping tariffs on inflation. So far inflation has crept up in the past couple of months but hasn't risen as much as many economists feared when Trump unveiled some of his duties. The Fed left its key interest rate unchanged last month at about 4.3%, though two members of its governing board dissented in favor of a rate cut. Both dissenters — Christopher Waller and Michelle Bowman — were appointed to the board during Trump's first term. At a news conference after the meeting, Chair Jerome Powell signaled that it might take significant additional time for the Fed to determine whether Trump's sweeping tariffs are boosting inflation. When the Fed changes its rate, it often — though not always — affects borrowing costs for mortgages, auto loans, and credit cards. The Fed typically keeps its rate high, or raises it, to cool borrowing and spending and combat inflation. It often cuts its rate to bolster the economy and hiring when growth is cooling.
Washington Post
2 minutes ago
- Washington Post
Fed minutes: Most officials worried about inflation moving higher
WASHINGTON — Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged. According to the minutes of the July 29-30 meeting, released Wednesday, members of the Fed's interest-rate setting committee 'assessed that the effects of higher tariffs had become more apparent in the prices of some goods but that their overall effects on economic activity and inflation remained to be seen.'
Wall Street Journal
2 minutes ago
- Wall Street Journal
Fed Minutes Reveal Broad Support for Holding Rates Steady Last Month
The Federal Reserve's decision to hold interest rates steady last month was broadly supported despite two officials who dissented in favor of a cut, according to minutes of the policy meeting released Wednesday. The minutes said 'almost all' officials supported the decision, implying that apart from the two dissenting officials, it was backed by the remaining 16 officials who participated.
