FOMC Minutes from the Jul 31-Aug 1 meeting that.>

FED: FOMC Minutes from the Jul 31-Aug 1 meeting showed that many 

participants agreed that if economic conditions progressed as expect, it 

would "likely soon be appropriate to take another step in removing 

policy accommodation." Labor market conditions strengthened, wage 

increases will occur "before long," tariffs to have an impact on 

short-term inflation, but many expect inflation to remain near 2%. 

- Looking ahead, many participants also noted it may be appropriate "in 

the not too distant future" to modify the language that policy "remains 

accommodative," as that language would not be appropriate "at some point 

fairly soon." A number of participants noted uncertainty in estimating 

the neutral, but the FFR was moving closer to the range of estimates.

- All said the trade disagreements and proposed tariffs were sources of 

uncertainty and risk." Said prolonged dispute could have adverse 

impacts, but no mention of the impact on near-term monetary policy. 

- On the yield curve, several pointed to evidence that a flatter curve 

precedes recessions and that policy-makers should watch it closely. 

Others said that "inferring economic causality from statistical 

correlations was not appropriate," that the flattening could be due to 

outside factors, should only be considered along with other economic data.