Fed minutes fallout, Walmart on deck - what's moving markets

investing.com:

Investing.com — Minutes from the Federal Reserve's latest policy meeting suggest that officials at the U.S. central bank were divided over their eventual decision to hike interest rates in July. Meanwhile, policymakers hinted that further increases in borrowing costs may be needed in the future to subdue inflationary pressures, sending stocks lower and Treasury yields higher. Elsewhere, Walmart is expected to lift its full-year forecast when the big-box retailer unveils its latest quarterly earnings Thursday.

1. Fed minutes hint at division over rate policy

Federal Reserve policymakers may have been united in their decision to hike interest rates to their highest level in 22 years at their last meeting in July, but minutes from that gathering point to internal doubts over the decision.

The central goal for the Fed remains unchanged: Bring inflation back down to its stated 2% target, preferably without causing a meltdown in the broader economy.

How officials choose to achieve this objective is still a subject of deep debate within the U.S. central bank. According to the minutes, «most participants» were fretting over ongoing «upside» pressures to price growth. «Some participants,» however, were wary about the wider impact of more policy tightening — indeed, a «couple» of officials even backed keeping borrowing costs steady last month.

Ultimately, the Fed decided unanimously to lift rates by 25 basis points. Yet, the discussions behind the move suggest that the Fed may now take a more cautious approach to its inflation dilemma, and, by extension, future rate hikes.

Officials warned that further tightening could be required, although they stressed that much will depend on the «totality» of economic data in the «coming