The Fed has released minutes from its last meeting, showing a divide between the committee. CNBC's Eamon Javers reports on what they disagreed over.

Washington

The Federal Reserve's latest meeting minutes reveal a split among policymakers regarding the primary risks to the U.S. economy. While a majority see inflation as the greater risk, some participants view the risks to inflation and employment as balanced, and a few consider employment risks more pressing. The minutes note that inflation remains above the Fed's 2 percent target and that unemployment is low, though there is uncertainty about the economic outlook and signs of softening labor demand.

The minutes also highlight concerns about the impact of tariffs, with evidence suggesting that domestic businesses and consumers are bearing most of the costs, contrary to White House claims. Additionally, the Fed points to slower economic growth in the first half of the year, with expectations for continued slow growth, and notes that declining immigration and increased use of artificial intelligence could affect future output and employment.

Fed minutes show participants noted risks to inflation and employment

We've also got some breaking news out of Washington, D.C. The Federal Reserve just releasing the minutes from its last meeting. And really, aside from what they said about the economy going forward, Eamon Jabbers, maybe there's a little drama on people, you know, not agreeing with Fed Chair Jay Powell. That's right, Brian, the Fed minutes indicate a somewhat divided open market committee here. Here's what they say from this July meeting. Participants generally pointed to risks to both sides of the committee's dual mandate. A majority, they say, of participants judged the upside risk to inflation as the greater of the two risks. Remember, it's inflation versus jobs for the Fed. Several participants, however, viewed the two risks as roughly balanced. And a couple of participants consider downside risk to employment to be the more salient risk. So choose your own adventure here on the Fed in terms of what's the biggest threat out there in terms of the fundamentals. They say inflation somewhat above the 2 percent goal. Unemployment rate remains low. Employment at or near estimates of maximum employment. Remember, this is before that big jobs revision that we saw a little bit after this meeting in July. Uncertainty about economic outlook remains elevated here. And some participants mentioned indicators could suggest a softening in labor demand. So maybe they saw some of that data that indicated the revisions were on their way. The Fed also said they expect inflation to increase in the near term. Tariff effects, they say, are becoming more apparent. They say a few participants note that tariff related factors could lead to stubbornly elevated inflation. And they say that evidence suggests that domestic businesses, consumers are predominantly bearing the tariff costs. Now, that puts the Fed at odds with the White House, which has said that the tariff costs are being absorbed by foreign countries. The Fed here saying evidence suggests that domestic businesses and consumers are the ones predominantly bearing those costs. Also, they say participants observed that growth of economic activity slowed in the first half of the year and for the second half of the year, they say several participants expect growth to remain slow for the second half. Two interesting notes here, Brian. One is a decline in immigration, they say, is lowering both actual and potential output growth and also on A.I. They say the risk that increased use of A.I. in the workplace may lower employment going forward. So two things to watch for in the dynamic in the workplace is decreased immigration and increased use of A.I. Brian, back over to you.

Israel has intensified its assault on Gaza City, launching a new operation to seize it while planning the forced displacement of nearly one million Palestinians to southern zones.

Jerusalem

Middle East Conflict

Israel begins Gaza City operation

A New York appellate court threw out a $527 million penalty in the civil fraud case against President Trump and several others. CBS News' Aaron Navarro reports.

New York

Trump civil fraud case $527 million penalty thrown out

The U.S. and the European Union have locked in a framework trade deal that includes a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.

Global Tariffs

U.S. and EU lock in trade deal

Israel says it began its military operation to take control of Gaza City. This comes after an apparent Hamas attack in Khan Younis targeting Israeli soldiers.

Israel says it began Gaza City expansion

After weeks of pushback from Democrats, House Republicans in Texas have passed controversial legislation to redraw the state's congressional map, giving the GOP an advantage in multiple seats.

Austin

Texas House passes controversial GOP redistricting map

U.S. President Donald Trump’s top-down diplomacy has experts in Ukraine skeptical about whether there has been enough preparation for proposed talks to actually end the war between Russia and Ukraine.

Moscow

Ukraine Invasion

Russia signals more talks needed before Zelenskyy-Putin meeting

The Texas House on Wednesday night passed a controversial, Republican-backed proposal to redraw the state's congressional maps. The bill now moves onto the Texas Senate. CBS News reporter Erica Brown has more.

Texas

Texas House approves GOP congressional redistricting map

Israel's military has called up tens of thousands of reservists in preparation for an expected assault on Gaza City, as the Israeli government considered a new proposal for a ceasefire after nearly two years of war.

Israel calls up 60,000 reservists ahead of Gaza City operation

The Trump administration says it is adding 407 items to the list of "derivative" steel and aluminum products subject to higher tariffs. The list includes products like car parts, household appliances, baby strollers, fire extinguishers and spray deodorants.

Trump expanding steel and aluminum tariffs

NATO military chiefs met virtually Wednesday for what was described as a candid discussion about security guarantees the alliance would be willing to provide to Ukraine in an effort to end Russia's war in the region.

Brussels

NATO chiefs meet virtually about potential Ukraine security guarantees

Israel's military leaders approved the next phase of their ongoing offensive in the territory. The operation will shift focus to Gaza City, targeting areas where Hamas is believed to still be active and where Israeli forces have not yet operated.

Israel approves next phase of Gaza offensive, focus on Gaza City

Despite not making landfall, Hurricane Erin is forcing mandatory evacuation orders in parts of North Carolina and is expected to cause rip currents for days along the U.S. East Coast.

North Carolina

Hurricane Erin forces evacuations on U.S. East Coast

The White House says it is working to secure a meeting between the presidents of Russia and Ukraine, which both have agreed to, while plans continue to create security guarantees for Ukraine.

Trump says no U.S. ground troops will be sent to Ukraine

Hamas has agreed to a ceasefire proposal for Gaza, but mediators are still waiting for an official response from Israel. CBS News contributor Robert Berger has the latest from Jerusalem.

Mediators await Israeli response to Gaza ceasefire proposal

Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

India's Modi meets China's foreign minister to rebuild ties

Texas Democrats who ended a walkout found themselves shadowed by law enforcement officers to keep them from repeating the protest that stalled Republican efforts to redraw congressional districts and fulfill President Donald Trump's desire to reshape U.S. House maps.

Police escort Texas Democrats to prevent new redistricting walkout

Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

Air Canada reaches tentative agreement with flight attendant union

Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

Ex-Hong Kong lawmaker granted asylum by Australia

Forecasters are giving urgent warnings to millions of people who live along the East Coast as Hurricane Erin churns in the Atlantic. The storm will not make direct landfall but is expected to bring dangerous rip currents.

East Coast of the United States

Hurricane Erin to bring dangerous rip currents to U.S. East Coast

Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

Los Angeles

"Ketamine Queen" to plead guilty in Matthew Perry's death

European leaders who converged on the White House for talks on the Russia-Ukraine war demonstrated a united front regarding Ukraine's security on Monday, underscoring the issue as pivotal for the entire continent, not just Ukraine.

EU leaders show cautious optimism following Zelenskyy, Trump talks

As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

Israel digs in on Gaza takeover as Hamas softens on ceasefire

President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

Trump tells Zelenskyy U.S. would help with security in a peace deal

Bolivia's presidential vote headed to an unprecedented runoff after elections Sunday that ended more than two decades of left-wing dominance in the Andean nation but signaled voters' trepidation about a major lurch to the right.

La Paz

Bolivia heads to runoff after historic defeat for the left

All Air Canada planes were grounded on Monday (August 18) after its 10,000 flight attendants refused a return-to-work mandate from the Canadian government.

Air Canada delays plans to resume operations

Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

Trump meeting with Zelenskiy, European leaders at White House

Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

Reports: Hamas accepts latest Gaza ceasefire proposal

Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

Erin expected to bring dangerous conditions to U.S. East Coast

Ahead of his Monday meeting with President Trump, Ukrainian President Volodymry Zelenksyy says his country will not give up any territory to Russia, even as the White House insists potential land swaps will be necessary. Willie James Inman reports.

Kyiv

Ahead of Trump meeting, Zelenskyy says won't give territory to Russia

Thousands of Israeli protesters demanded a deal to secure the release of hostages still held by Hamas in one of the biggest demonstrations since the war in Gaza began. Debora Patta reports.

Breakdown