2025.08.2018:32:31UTC+00DXY Little Changed after FOMC Minutes

The dollar index remained stable, edging slightly lower to approximately 98.2, following the release of the Federal Reserve’s July meeting minutes. These minutes revealed that policymakers are more preoccupied with inflation concerns than with the state of the labor market, particularly as tariff-related issues further divide the committee. A majority of officials in the Fed regarded inflation risks as surpassing concerns about employment weakness, thus maintaining a sense of caution in the markets prior to Jerome Powell’s upcoming speech at the Jackson Hole symposium on Friday. Investors are eagerly anticipating this event for potential insights into forthcoming monetary easing measures. Recent economic data has heightened anxieties over inflation while simultaneously casting doubt on the robustness of the job market, leaving traders unsure about the Federal Reserve's future direction. Adding to the complexities is the political pressure from President Trump, who has called for the resignation of Fed Governor Lisa Cook over alleged mortgage fraud and persists in advocating for reduced interest rates. With Powell’s tenure set to end in May, President Trump is exploring potential successors, and Treasury Secretary Scott Bessent has recently endorsed a more significant half-point rate cut by September.