The MPC minutes reveal a cautious stance, with some members acknowledging room for an August rate cut, while Governor Malhotra highlighted external growth challenges. Uncertainty surrounding trade policies and the impact of past easing measures influenced the decision to maintain the status quo. Members opted to wait and assess the full transmission of previous policy actions before considering further cuts.
Fed’s Jefferson urges patience on rates; Kashkari sees more hikes ahead
Federal Reserve Vice Chair Philip Jefferson stated that he sees no immediate need for further interest rate adjustments. He emphasized that future decisions would depend