Proceedings of the Federal Reserve Conference: the escalation of the war in Iran has “shaded” inflation prospects

The minutes of the Federal Reserve meeting show that Federal Reserve officials consider the inflation outlook “highly uncertain” and that the renewed escalation of the war in Iran “grows a shadow over the inflation outlook”. Officials noted that the labour market remained stable and that labour demand and supply were balanced. In the post-session statement, officials almost exclusively followed the wording of the June statement, reiterating once again their commitment to “price stability”. At the same time, they continued to describe economic growth as “stable” and noted that capital investment and productivity growth had been strong on average. The July vote marked the Federal Reserve ' s fifth consecutive choice to maintain interest rates after three consecutive interest rate reductions at the end of 2025。