Federal Reserve Divided Over Interest rate hikes & Chinese banks are selling dollars.

Federal Reserve Divided Over Inflation Concerns and Rate Hikes, July Minutes Reveal The Federal Reserve's July meeting minutes unveiled a split view among officials on inflation and interest rate increases. While "most participants" remained wary of elevated inflation risks, signs of dissent surfaced. The minutes from the July 25-26 session indicated two officials favored maintaining rates instead of the authorized hike. State banks, often acting on behalf of the central bank during yuan pressure, are engaging in dollar sales to mitigate the yuan's recent decline. Offshore branches of these banks were also observed selling dollars during London and New York trading hours. This effort to sell dollars may stabilize the offshore yuan and prevent excessive divergence from its onshore counterpart. The yuan has dropped about 2.4% against the dollar this month and 6% since the year's start, as concerns over China's economic growth and property sector risks mount.