According to the recent minutes of the Fed's July meeting, most Fed officials prefer to maintain the current benchmark interest rate level. The minutes indicate that the vast majority of participants believe it is appropriate to keep the benchmark interest rate in the range of 4.25%-4.50%, with only two officials proposing a 25 basis point rate cut.

The meeting minutes focused on several key areas. Regarding the economic outlook, officials generally believe that inflation risks remain and expect inflation to rise in the short term. Some officials pointed out that tariff policies could lead to a one-time increase in prices, while others expressed concerns that supply chain disruptions could trigger persistent high inflation.

Regarding the labor market, the minutes pointed out that the supply and demand situation is gradually tending to balance, but also noted that the unemployment rate has risen and the speed of employment growth has slowed down. This complex labor market situation has sparked discussions among officials.

In terms of financial stability, some participants expressed concerns about the current high asset valuations. The meeting also specifically discussed the issue of stablecoins, emphasizing their potential impact on the banking sector, the overall financial system, and the implementation of monetary policy.

Looking ahead, the vast majority of participants believe that if economic data continues to meet expectations, a rate cut may be considered in September. However, almost all officials emphasized that more economic data is needed to strengthen their confidence in the sustained decline of inflation before making a rate cut decision.

This meeting minutes reflect the Fed's cautious attitude in the current complex economic environment, showing the challenges they face in balancing inflation control, economic growth, and financial stability. Economic data in the coming months will be a key factor in determining the direction of Fed policy.