The afternoon release of the minutes from the last Federal Open Market Committee (FOMC) meeting on July 31 through Aug.1 showed Fed officials are likely to raise U.S. interest rates next month due to recent solid economic growth and expectations for more of the same. Markets showed no significant reaction to the minutes as they contained nothing that traders did not expect.
However, the FOMC members said lingering trade disputes between the U.S. and its major trading partners could have a negative impact on economic growth.
Some now believe after the Fed raises rates in September that the central bank could hold off on further rate hikes until next year—due to the U.S. trade disputes in progress.
The members also discussed dropping language from their statements that terms U.S. monetary policy "accommodative."
Another highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, that begins on Friday. Past years' meetings have produced important proclamations from world central bankers. Fed Chairman Powell is slated to speak at the symposium.