The June meeting was Kevin Warsh’s first as Federal Reserve Chairman|@federalreserve|X

Minutes from Federal Reserve Chairman Kevin Warsh’s first Federal Open Market Committee (FOMC) meeting reveal deep divisions over the future path of US interest rates.

Despite a unanimous decision to leave rates unchanged in June, the FOMC discussions released on Wednesday show that “most participants” suspect that inflation could come down to 2%, justifying steady or lower rates this year.

However, participants also noted that inflation could elevate “due to strong AI-related demand, the conflict in the Middle East, or the effects of tariffs,” warranting interest rate hikes.

The FOMC is almost evenly split on whether interest rates should be maintained or slightly lowered by year-end, while others expect them to be higher.