Federal Reserve Chair Jerome Powell has been under pressure from President Trump to lower the central bank's benchmark interest rate.

The central bank retired a previous strategy and on Friday unveiled a new approach that updates how inflation and employment are balanced.

Federal Reserve officials believe inflation from new tariffs is just around the corner, and that American consumers are going to pay the costs, minutes of the Fed’s July meeting show.

Federal Reserve Bank of Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip.

Minutes of the Federal Reserve’s July meeting show widespread concern over the slowing economy and the impacts of import tariffs.

Federal Reserve policymakers will be debating whether stubborn inflation or slower hiring is the bigger problem for the economy as they prepare for an annual conference in Jackson, Wyoming, next week and a crucial policy meeting in September.

Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as President Donald Trump’s tariffs fueled a growing divide within the central bank’s rate-setting committee.

The minutes of the rate-setting Federal Open Market Committee, published on Wednesday, showed that “some [members] noted that it would not be feasible or appropriate to wait for complete clarity on the tariffs’ effects on inflation before adjusting the stance of monetary policy”.