Dollar Creeps Up After FOMC Tea Spills: Inflation Worries Got More Clout Than Job Jitters

So like the Fed's July sesh spilled the tea: most of the peeps in charge are way more stressed about inflation going off the rails than about people not having jobs. 🎢 They're like, "yo, those tariffs are making prices spicy," even though a couple of big shots were all like, "let's just cut the rates already, fam."

The minutes showed the vibe in the room was most of the 18 policy peeps were like, "Inflation's gonna blow up, y'all," while a few were chill and said it was balanced, and just a couple were like, "Nah, jobs are the real MVP worry."

Things were spicy with the first dual dissent since forever (well, 1993). Governors Christopher Waller and Michelle Bowman were like, "nah fam, we should be cutting rates, no cap" while everyone else is playing it safe and keeping it steady. 😅

Main Vibes

• Inflation chaos: Most of the squad was like, "Inflation's the real beast," cuz prices have been running wild past that 2% mark for what seems like forever, bruh. 🤯
• Tariff drama drags on: Peeps were still like, "Whoa, when and how are these tariffs gonna chill out on this year's inflation, tho?"
• Historic rift: Waller and Bowman were that rare duo since '93 going for a 25-basis-point cut. Talk about a throwback!
• Pass-through probs: Loads of peeps at the table think companies will have no choice but to pass those spicy tariff costs onto the squad who buy their stuff. 🌐
• Policy not so aggressive: Some like, "Yo, our money moves ain't as wild as we thought. Maybe we're less restrictive than before, lol."

Peep the official FOMC Meeting Minutes (July 2025)

Fed squad were really in their feels about tariffs sticking around. A few were like, "These tariffs are gonna keep inflation high-key sticky, and it's gonna be hard to suss out what's tariffs and what's just inflation being extra."

Looking ahead, some said the crew might hit a bump if inflation stays on that extra level while job vibes dip. 🔮

Market Reactions:

USD vs. Big Dogs: 5-min Breakdown

The dollar did a cheeky slip before London wrapped up but got back in shape after Fed minutes were all like, "We’re serious about inflation, bruh." Most major currency pairs were chill, with USD/JPY flexing higher. No major drama, like when Fed surprises usually hit, which means traders already peeped the hawk vibe coming.

The low-key response made sense: traders were ready for those inflation convos, the minutes were kinda dated before July's job meh vibe, and folks are keeping it cool waiting for Powell’s chill in Jackson Hole this Friday.

The dollar pretty much rode out those post-minutes gains, ending the sesh kinda weak against the franc, the yen, and the euro, which was having a mini-moment. 💫