Fed Minutes Show Many Officials Wanted a Rate Hike

Bloomberg's Michael McKee discusses the July FOMC minutes, which showed a divided committee and several officials willing to tighten further if inflation does not decline. The minutes emphasized high inflation uncertainty, upside inflation risks, and Middle East conflict as a cloud over the outlook. McKee says the Fed appears hawkish and unlikely to give clear forward guidance at Jackson Hole. Markets showed a modest lift in equities and a dip in Treasury yields after the minutes. - July FOMC minutes revealed a divided Fed, with many participants supporting tightening if inflation does not decline. - Inflation risks were judged as skewed to the upside and highly uncertain. - Middle East conflict was cited as significantly clouding the inflation outlook. - Participants debated AI's short-run inflation risks versus productivity benefits. - Most members agreed to hold rates in July pending additional data before September. - Michael McKee says the minutes were somewhat hawkish and the committee lacked a unified view. - He expects Jackson Hole to offer framework details rather than clear policy signals. - Markets reacted with a modest lift in equities and lower Treasury yields.