Recently, the Federal Reserve Board of the United States released the minutes of its July meeting, drawing widespread attention from the market. The minutes revealed the Fed's policy orientation and considerations under the current economic environment.

First, the minutes show that some members expressed concerns about the labor market situation. Although Waller and Bowman voted against the rate hike based on the considerations of the deteriorating job market, the majority of members believe that the inflation risks caused by tariffs are more concerning than employment issues, and therefore decided to maintain the current policy.

Secondly, the Fed members conducted an in-depth discussion on the impact of tariffs on inflation. The focus of the debate was whether this impact is short-term or long-term. Most members tend to believe that tariffs may increase the risk of long-term inflation getting out of control, therefore more time and data are needed for assessment.

Third, most members believe that the current interest rate level is close to neutral. This means that the current interest rates will neither lead to an overheating of the economy nor suppress economic growth.

Considering the recently released employment data, some members' previous concerns about the labor market seem to have been confirmed. Next, the market will closely watch two important events:

First, there is the upcoming speech by Fed Chairman Powell, which may provide more clues about the policy direction for the market.

Second, various economic indicators from now until the Fed meeting in September, including the Consumer Price Index (CPI), Personal Consumption Expenditures (PCE), Producer Price Index (PPI), non-farm employment numbers, and unemployment rate, etc. These data will become important bases for the Fed and market participants to assess the direction of the economy.

Overall, the Fed is faced with the complex task of balancing employment, inflation, and economic growth. The future direction of policy will depend on the performance of these key economic indicators and changes in the global economic environment. Market participants need to closely follow these factors to better anticipate the Fed's policy moves.