US Fed minutes D-1···Will there be a signal for a September rate cut?

Attention Focused on the June FOMC Minutes to be Released Tomorrow Morning
Will the June FOMC Minutes Provide Clues to Monetary Policy Direction?

Attention is focused on whether the June Federal Open Market Committee (FOMC) meeting minutes, to be released by the U.S. Federal Reserve (Fed) on the 10th, will suggest the possibility of a rate cut in September.

The U.S. Federal Reserve is scheduled to release the June FOMC meeting minutes at 2 AM Korean time on the 10th. At last month's meeting, the Fed kept the benchmark interest rate at 4.25-4.50% and previously suggested the possibility of two rate cuts by the end of the year.

Market experts predict that they will look for clues in these minutes about the timing of the end of the Fed's wait-and-see stance and future monetary policy direction. In particular, they are noting the possibility that the minutes may include expectations that sufficient economic indicators will be secured before the end of summer to decide on a rate cut, given the confirmed price stability in the June statement.

Experts stated, "If the minutes' content matches market expectations, the anticipation for a September rate cut will be further strengthened" and "This will act as a positive factor for the financial markets overall."

Meanwhile, the Fed's actual decision on rate cuts is expected to be determined by the trend of key economic indicators such as future inflation rates and employment figures.

Choi Joo-hoon joohoon@blockstreet.co.kr