Inflation or jobs: Federal Reserve officials are divided over competing concerns

Main Idea: Federal Reserve officials are split on whether weak hiring or stubborn inflation is the bigger risk, making a September rate cut uncertain as Chair Jerome Powell prepares to speak in Jackson Hole.

Key Points:

• Slower job growth has pushed some Fed officials toward lowering rates to support hiring and spending.
• Other officials still worry inflation could stay too high, especially if tariffs keep raising prices.
• Fed leaders disagree on how much tariffs will affect inflation and whether any price jump will be temporary or lasting.
• Markets expect a September cut, but new jobs and inflation reports, plus Powell’s speech, could change that view.