Federal Reserve officials in their June discussions appeared to move closer to their first interest rate hike in nearly a decade but were concerned that a significant slowdown in China could pose risks to the U.S. economy.
Minutes of their July 28-29 discussions show that officials believed they were close to achieving their goals on employment. But they were split on whether inflation had risen enough to justify an increase.
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On China, the minutes showed Fed officials believed that a big drop in the Chinese stock market would have only limited implications for growth prospects in China. However, this discussion occurred before a decision by Chinese officials to devalue their currency roiled global financial markets.