[Institution: Fed meeting minutes will show participants are increasingly concerned about labor market conditions] Golden Finance reported that the upcoming FOMC meeting minutes will reveal why the committee has lowered its expectations for a rate cut in 2024 while keeping economic growth and unemployment expectations unchanged. The unexpected rise in inflation in the first quarter of this year did shake policymakers' confidence in the inflation path, but in any case, the inflation forecast provided by the Fed in June may be outdated after CPI and PCE showed a significant slowdown in May. The baseline scenario is that the minutes may show that participants' judgment on the balance of risks is balanced. The speed at which labor market conditions deteriorate is increasingly important for the timing of the first rate cut. Although FOMC members maintained their unemployment rate expectations unchanged, the minutes will show that they are increasingly worried that the labor market may cool rapidly, opening the door to two rate cuts this year.
