The Federal Reserve's June meeting minutes revealed a committee prepared to raise interest rates further if economic conditions warrant, underscoring the central bank's cautious approach to inflation.
Nearly all participants indicated they would support additional tightening, rejecting the notion that the current policy stance is restrictive enough to guarantee a return to the 2% target without further action.
5% in June, driven by resilient US labor market data and growing expectations that the Fed will maintain a higher-for-longer policy path.
The hawkish tone from the minutes provided fresh support for the US dollar, which is on track for its best monthly performance in almost 12 months.
The currency index has advanced approximately 2.5% in June, driven by resilient US labor market data and growing expectations that the Fed will maintain a higher-for-longer policy path.
EUR/USD traded lower following the release, reflecting the widening divergence between US and European monetary policy outlooks.
This development adds to the pressure on global markets to price in a more restrictive US policy environment.