Minutes of the Federal Reserve’s 29–30 July policy meeting, published Wednesday, show most officials view the threat of higher inflation as the dominant risk facing the economy, outweighing potential weakness in the labour market. Policymakers cited lingering price pressures and warned that inflation expectations could drift higher if not contained. Participants said the full economic impact of the 145 percent U.S. tariff on Chinese imports may unfold only gradually. While tariff effects are already visible in some goods prices, many officials judged it would be neither feasible nor appropriate to wait for complete clarity before altering the stance of monetary policy, and several expected firms to pass higher costs on to consumers. A number of committee members flagged elevated equity and credit valuations as a vulnerability and suggested close monitoring of financial stability risks. Several officials also noted that the current 4.25 %-4.50 % federal-funds target range may sit near its neutral level, indicating limited room for additional tightening without risking growth.