The Federal Reserve released its minutes in Wednesday regarding its last meet in July. The minutes said that the officials viewed the July interest rate cut as a “recalibration” of monetary policy and not the beginning of a long string of rate cuts.
Further, members were divided on whether a rate cut was to be made, with some members also suggesting a cut in interest rates by 50bps in July.
“Several participants” voted in favor of keeping the rates steady, quoting a strong labor market, confident consumers, and the unemployment rate near historic lows.
Eventually, a rate cut of 25bps was made, characterized as a “mid-cycle adjustment” and the Fed iterated the significance of being “flexible” because some of the risks they were monitoring could be resolved.
Meawhile, US retailers posted upbeat earnings for the June quarter.
Asian markets are currently trading lower as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.11% while the Hang Seng is down 0.63%. The Nikkei 225 is not trading.
-With inputs from CNN & CNBC