2017.08.1623:57:00UTC+00Latest Fed Minutes Show Divide Among Policymakers

The minutes of the latest policy meeting by the U.S. central bank showed that policymakers were divided over when to unveil the start date of reducing its balance sheet and showed the increasing concerns among the FOMC regarding the persistent weakness in the inflation and what it means for further interest rate hikes.

The record of the July 25-26 meeting revealed that some members of the Federal Open Market Committee were prepared to announce a launch date for unwinding the Fed's $4.5 trillion balance sheet in the previous month, but they were outnumbered by the majority that voted to hold off the decision.

Worries of policymakers about the recent softness in the inflation trend was also revealed in the minutes. The U.S. central bank's preferred measure of inflation fell to 1.5 percent in June from 1.8 percent in February and has continued to be below its 2 percent target for over five years.

Some called to stand pat on hiking interest rates until it was clear that the trend was only transitory, weakening the case for another increase in federal fund rates in September and December.

The readout of the policy meeting was perceived as slightly dovish by economists, despite the Fed officials not making significant changes in the outlook for monetary policy.