Stock Market Update

[BRIEFING.COM] The major averages were mostly unchanged after the FOMC minutes showed broad support for keeping the fed funds rate at 4.25%–4.50%. Participants highlighted both inflation and employment risks, though most viewed upside inflation risk as more pressing. Some officials noted businesses may increasingly pass tariff costs to consumers, while others said firms are using strategies like supplier shifts, margin cuts, and automation to limit price hikes.

The minutes also underscored that longer-term inflation expectations remain anchored, though the persistence of above 2% inflation raises concern about slippage if tariff pressures linger. A few participants said the current rate may already be close to neutral, given overall financial conditions.

Treasury yields are a hair higher compared to pre-minutes, with the yield on the 10-yr down about one basis point at 4.295%.