Group 1 - The Federal Reserve's FOMC meeting minutes revealed a rare dissent among members regarding interest rates, with two members advocating for a 25 basis point cut to prevent further weakness in the labor market, marking the first dissent since 1993 [1] - Most Fed officials expressed greater concern over inflation risks compared to employment weakness, acknowledging the recent disappointing non-farm payroll data and significant downward revisions to previous employment figures [2][3] - The discussion among Fed officials highlighted the potential long-term inflationary impact of tariffs, with concerns that companies may increasingly pass on tariff costs to consumers, thereby exerting upward pressure on inflation [2] Group 2 - Fed officials issued a rare warning about vulnerabilities in the U.S. financial system, citing high asset valuations and concerns over the impact of stablecoins on the banking and financial systems [4] - There are worries about the fragility of the U.S. Treasury market, with officials expressing concerns over the increasing presence of hedge funds and the declining liquidity in the market, which could exacerbate volatility [4] - The current high levels of U.S. government debt, combined with policy uncertainty and a trend towards de-globalization, could lead to significant fluctuations in global capital markets due to the fragility of the U.S. financial system [5] Group 3 - The discussion on stablecoins emerged prominently in the FOMC minutes, indicating potential explosive growth for these dollar-pegged digital assets, while also raising concerns about their impact on the banking system and monetary policy [6]