The central bank retired a previous strategy and on Friday unveiled a new approach that updates how inflation and employment are balanced.

Inflation expectations derived from the bond market were rising on Friday, suggesting simmering concerns about future price gains despite Federal Reserve Chair Jerome Powell's willingness to consider cutting interest rates.

Christopher Waller, first nominated to his post by President Donald Trump in 2019, has become one of the most closely watched Fed officials.

Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank’s rate-setting committee.

Minutes of the Federal Reserve’s July meeting show widespread concern over the slowing economy and the impacts of import tariffs.

Federal Reserve policymakers will be debating whether stubborn inflation or slower hiring is the bigger problem for the economy as they prepare for an annual conference in Jackson, Wyoming, next week and a crucial policy meeting in September.

Federal Reserve Bank of Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip.