The Federal Reserves minutes released Wednesday showed that the two policymakers who dissented from last months decision to keep interest rates unchanged did not receive support from other members for a rate cut.

The minutes from the July 2930 meeting stated: Almost all participants judged that it was appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50% at this meeting.

Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller both voted against keeping the benchmark rate steady, preferring a quarter-point cut to protect the labor market from further weakness. This marked the first time since 1993 that more than one governor dissented on a rate decision.

Within 48 hours of the meeting, Labor Department data appeared to validate Bowman and Wallers concerns, showing July job gains well below expectations, alongside higher unemployment and the lowest participation rate since late 2022.

Adding to the unease, historical revisions removed more than a quarter-million jobs previously thought to have been created in May and June, undercutting the narrative of a resilient labor market. The revisions infuriated President Donald Trump, who responded by firing the head of the Bureau of Labor Statistics.

Subsequent inflation data, however, gave ammunition to those worried about Trumps aggressive tariffs rekindling price pressures. Core consumer inflation accelerated in July beyond forecasts, followed by an unexpected spike in producer prices.

The minutes revealed that officials continued debating the impact of tariffs on inflation and the degree of current monetary restraint. Several policymakers noted that rates may not be far from the neutral level that neither stimulates nor restricts growth.

They acknowledged tariffs were already pushing up some goods prices, but judged the overall economic and inflation effects as still uncertain. Looking ahead, participants recognized the potential trade-offs if inflation stays elevated while the labor market weakens further.

Trumps Pressure Campaign

Before the release, CMEs FedWatch tool priced an 85% chance of a quarter-point cut at the September 1617 meeting. Rates have been unchanged since last December.

The minutes come just two days ahead of Chair Jerome Powells highly anticipated speech at the annual Jackson Hole symposium, likely his final address as Fed chief before his term expires next May. The speech will signal whether Powell is shifting toward protecting jobs or remains aligned with inflation hawks as the Feds 2% goal drifts further out of reach.

The lack of cuts since Trumps return to the White House has drawn the presidents ire, with repeated attacks on Powell for holding rates steady. Trump has already begun exploring replacements, aided by a surprise resignation this month that gives him another seat to fill on the Board of Governors.

He nominated Council of Economic Advisers chair Steven Miran to replace former governor Adriana Kugler, whose term was set to expire in January. It remains unclear if the Senate will confirm Miran before the next Fed meeting.

On Wednesday, Trump escalated pressure further by demanding the resignation of Governor Lisa Cook, accusing her of mortgage-related improprieties tied to properties in Georgia and Michigan.