Fed Minutes Show Limited Support for Rate Cuts Despite Dissent

The Federal Reserve's July meeting minutes reveal a stark divide among policymakers, with only two officials—Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller—voting for an immediate rate cut. Their dissent, the first multi-governor opposition since 1993, aimed to preempt labor market softening. The majority held firm at 4.25%-4.50%, a stance later challenged by July's dismal jobs report showing plunging participation rates and a 250,000-position downward revision.

Markets now scrutinize the Fed's dual mandate as employment data volatility clashes with persistent inflation. Cryptocurrencies historically thrive in loose monetary policy environments, yet Bitcoin and ethereum showed muted reaction—a possible sign of decoupling from traditional macro narratives. The divergence underscores crypto's maturation as an asset class.