Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Citing the growing risk of greater inflation and increasing unemployment, the May 2025 FOMC minutes revealed the Federal Reserve's worries about the U.S. economic outlook. Fed officials acknowledged the possibility of "difficult trade-offs" due to persistent inflation and a potential economic downturn. Projections by the staff indicated reduced GDP expansion for 2025 and 2026 as well as a predicted "significant" decline in the labor market.
Chairman Jerome Powell emphasized the challenge in gauging the full impact of these tariffs on inflation expectations. Trade policies—particularly tariffs—were found to be major contributors to inflationary pressures and slower growth, as well as to affect economic activity. In light of the growing ambiguity, the Committee approved a prudent, wait-and-see approach to financial policy.
The FOMC's decision to keep the federal funds rate between 4.25% and 4.50% mirrored their conservative posture amid these economic difficulties. The minutes noted no immediate plans for interest rate cuts and accepted that policy uncertainty made achieving the dual goals of full employment and low inflation challenging. Market reaction to the minutes was subdued as they mostly confirmed the Fed's current hawkish stance and fears about trade-related inflation risk.
