The Federal Reserve System released the latest minutes of its meeting on August 21, revealing several key economic issues. Participants expressed a cautious attitude towards short-term inflation trends, anticipating a rise. However, they also emphasized that there are still many uncertainties regarding the impact of tariff adjustments this year, including their timing, magnitude, and duration.

The recent downward revision of non-farm payroll data has attracted more attention, possibly deepening the concerns of Federal Reserve officials about an economic slowdown. Some participants predict that economic activity growth may remain sluggish in the second half of 2023.

It is worth noting that the term "stablecoin" was mentioned as many as eight times in the minutes of this meeting, indicating the Federal Reserve's high regard for this emerging financial tool. Several participants delved into the latest developments of payment stablecoins and their potential impact on the financial system. They particularly pointed out that with the passage of the GENIUS Act (full name: the U.S. Stablecoin Guidance and National Innovation Act), the application scope of payment stablecoins may further expand.

Nick Timiraos, a senior reporter for The Wall Street Journal, analyzed that although the Federal Reserve's meeting minutes typically do not disclose too much new information, this time the minutes reinforced two key points: first, based on Powell's press conference, the overall tone of the July meeting was relatively hawkish, at least more so than the market had expected. Second, the Federal Reserve's reliance on economic data and forecasts has noticeably increased. Especially after the employment report was released on August 1, more officials have become more open to the possibility of a rate cut in September.

This meeting summary not only reflects the Federal Reserve's assessment of the current economic situation but also demonstrates their attitude towards emerging financial technologies. As the economic environment continues to change, the direction of the Federal Reserve's policies will remain under close scrutiny by global financial markets.