Fed Meeting Minutes: Most Officials See Advantages in Shortening the Statement, Support Removing "Dovish Bias"

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Gold Finance reported that on July 9, the Federal Reserve's June meeting minutes showed that policymakers also discussed Fed Chairman Warsh's proposal to end "forward guidance" and reduce comments on future interest rate decisions in the statement. "Most participants noted that they see advantages in shortening the statement," the minutes said, while "most participants" supported removing language implying that the Fed's next policy move is likely a rate cut. The alternative plan approved by the Fed in June completely removed guidance on interest rates, consistent with Warsh's overall preference to avoid committing to rate decisions. At the June meeting, the Fed held the benchmark interest rate steady in the range of 3.50%-3.75%, but the latest forecast shows that the market generally expects a possible rate hike this year, with 9 of 18 policymakers expecting a slight increase in rates by the end of 2026.
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