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.

Behind closed doors, officials at the Federal Reserve said much the same as they've said in public: that concerns over tariffs stoking inflation led them to keep the central bank's interest rate flat in July instead of cutting it.

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.

Federal Reserve Chair Jerome Powell's speech at the Jackson Hole conference on Friday comes amid the labor market showing signs of weakness and inflation ticking higher due to tariffs.