Most Federal Reserve officials see rate cuts coming this year. They are just divided over how many. That is the takeaway from minutes from the central bank’s June meeting, released Wednesday. While some members indicated cuts could happen as soon as July,

While generally saying the labor market remains solid and inflation elevated but showing progress toward the Fed’s 2% annual target, the minutes reflect a mixed assessment of whether the tariffs will spur inflation or be more of a one-time hit that will not lead to higher long-term price increases.

The emerging divide among Federal Reserve officials over the outlook for interest rates is being driven largely by differing expectations for how tariffs might affect inflation, a record of policymakers’ most recent meeting showed.