Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

Fed officials diverged at their June 17-18 meeting how aggressively they would be willing to cut interest rates

They were split between concerns over tariff-fueled inflation and signs of labor market weakness and economic strength

Saul Loeb | Afp | Getty ImagesFederal Reserve officials diverged at their June meeting how aggressively they would be willing to cut interest rates, split between concerns over tariff-fueled inflation and signs of labor market weakness and economic strength

Minutes from the June 17-18 meeting released Wednesday showed that policymakers largely held to a wait-and-see position on future rate moves

However, the summary also showed a growing divide over how policy should ceed from here. "Most participants assessed that some reduction in the target range for the federal funds rate this year would ly be appriate," the minutes said, as officials saw tariff-induced inflation pressures as potentially "temporary and modest" while economic growth and hiring could weaken

How far the cuts could go, though, was a matter of debate

Opinions ranged from a "couple" officials who said the next cut could come as soon as this month to "some" who thought no reductions this year would be appriate

Though the minutes do not mention names, Fed Governors Michelle Bowman and Christopher Waller have gone on record saying they could see their way to cutting rates as soon as the July 29-30 Fed meeting if inflation stays under control

At the same time, "several" officials said they thought the current overnight funds rate "may not be far" from a neutral level, meaning only a few cuts may be ahead

Those officials cited inflation still above the 2% goal amid a "resilient" economy

In Fed parlance, some is more than several

Officials at the meeting d their jections for rate cuts, expecting two this year ed by three more over the next couple years

However, the "dot plot" of individual members' outlooks reflected division over the extent of cuts

The release comes with President Donald Trump ramping up pressure on Fed Chair Jerome Powell and his cohorts to cut aggressively

In public statements and on his Truth Social site, Trump has lambasted Powell, going as far to call for his resignation

Powell has said repeatedly that he won't bow to political pressure when it comes to setting monetary policy

For the most part, he has joined the cautious apach, insisting that with a strong economy and uncertainty over inflation, the Fed is in a good position to stay on hold until it has more information

The minutes largely reflect that stance that policy is currently well positioned to respond to changes in the data. "Participants agreed that although uncertainty inflation and the economic outlook had decreased, it remained appriate to take a careful apach in adjusting monetary policy," the document stated

Officials also noted that they "might face difficult tradeoffs if elevated inflation ved to be more persistent while the outlook for employment weakened. " In that case, they said they would weigh which side was further from its goal in formulating policy

Since the meeting, Trump has continued negotiations with key U

Trading partners, with the tariff ground shifting on a near-daily basis

Trump initially announced tariffs on April 2, and then has altered deadlines for agreements, most recently ticking off a series of letters to foreign leaders notifying them of looming levies should they not act

Recent data indicate that Trump's tariffs have not fed into prices, at least on a large scale

The consumer price index showed an increase of just 0

While inflation gauges are still mostly above the Fed's 2% target, recent sentiment surveys show the public is growing less fearful of inflation further down the road. "Many participants noted that the eventual effect of tariffs on inflation could be more limited if trade deals are reached soon, if firms are able to quickly adjust their supply chains, or if firms can use other margins of adjustment to reduce their exposure to the effects of tariffs," the minutes stated

At the same time, job gains have slowed considerably, though the rate of nonfarm payrolls growth has consistently surprised economists

Consumer spending has slowed considerably

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