{"id":66766,"date":"2026-08-19T14:38:12","date_gmt":"2026-08-19T18:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-minutes-reveal-hawkish-tilt-as-us-canada-tariff-deal-shakes-metal-stocks\/66766\/"},"modified":"2026-08-19T14:38:12","modified_gmt":"2026-08-19T18:38:12","slug":"fed-minutes-reveal-hawkish-tilt-as-us-canada-tariff-deal-shakes-metal-stocks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-minutes-reveal-hawkish-tilt-as-us-canada-tariff-deal-shakes-metal-stocks\/66766\/","title":{"rendered":"Fed Minutes Reveal Hawkish Tilt as US-Canada Tariff Deal Shakes Metal Stocks"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>FOMC minutes reveal a hawkish bias<\/strong>, with several officials favoring a <strong>25-basis-point rate hike<\/strong> in July and many warning that higher rates will be necessary if inflation does not continue to decline.<\/li>\n<li><strong>US steel and aluminum stocks plummeted<\/strong> following reports that the U.S. and Canada are nearing a deal to <strong>halve tariffs from 50% to 25%<\/strong>, easing trade tensions but threatening domestic price premiums.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> is reportedly in talks to fund its AI data supplier, <strong>Mercor<\/strong>, at a massive <strong>$20 billion valuation<\/strong>, signaling continued aggressive investment in the AI supply chain.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as Israel signaled military action against Turkish entrenchment in Syria, while U.S. naval forces reported active enforcement of the <strong>Iran blockade<\/strong>, having redirected 65 vessels to date.<\/li>\n<li><strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> remained resilient<\/strong>, trading up <strong>3.5% at $4,489.41\/oz<\/strong> despite the hawkish Fed tone, as investors weighed inflation risks and global instability.<\/li>\n<\/ul>\n<h2>Fed Minutes Signal Potential for Future Hikes<\/h2>\n<p>The minutes from the <strong>Federal Open Market Committee (FOMC)<\/strong> July 28-29 meeting revealed a more aggressive stance than the initial &quot;hold&quot; decision suggested. While most officials supported steady rates, <strong>several participants favored an immediate 25-bps increase<\/strong>, arguing that financial conditions might not be restrictive enough to return inflation to the <strong>2% target<\/strong>.<\/p>\n<p>Participants highlighted that <strong>inflation risks remain skewed to the upside<\/strong>, citing factors such as a protracted Middle East war and the broader effects of <strong>AI investment on prices<\/strong>. Chairman <strong>Kevin Warsh<\/strong> also initiated discussions on reducing the number of policy meetings to <strong>six per year<\/strong> to allow for more data accumulation, though no changes were made to the 2026 schedule.<\/p>\n<h2>US-Canada Tariff Deal Hits Domestic Steel Producers<\/h2>\n<p>Shares of major U.S. metals firms saw a sharp sell-off Wednesday following news that the U.S. may <strong>cut tariffs on Canadian steel and aluminum from 50% to 25%<\/strong>. The move, intended to reduce cost pressures for U.S. manufacturers, triggered concerns over increased competition for domestic producers.<\/p>\n<p><strong>Nucor (<a href=\"\/stock\/NUE\">NUE<\/a>)<\/strong> and <strong>Steel Dynamics (<a href=\"\/stock\/STLD\">STLD<\/a>)<\/strong> both dropped <strong>6.2%<\/strong>, while <strong>Century Aluminum (<a href=\"\/stock\/CENX\">CENX<\/a>)<\/strong> fell <strong>8.5%<\/strong>. <strong>Cleveland-Cliffs (<a href=\"\/stock\/CLF\">CLF<\/a>)<\/strong> also saw a decline of <strong>2.5%<\/strong> as investors reacted to the potential easing of North American supply chain costs.<\/p>\n<h2>Nvidia Eyes $20 Billion Mercor Deal<\/h2>\n<p>In the technology sector, <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> is reportedly discussing a significant funding round for <strong>Mercor<\/strong>, an AI data supplier. The deal would value Mercor at <strong>$20 billion<\/strong>, highlighting the premium <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> is willing to pay to secure the data infrastructure necessary for its dominant AI chips.<\/p>\n<p>This move comes as the Fed minutes noted that <strong>AI-related capital expenditures<\/strong> are beginning to have a &quot;broader effect&quot; on price levels across the economy. Despite the hawkish monetary outlook, <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a>&#39;s aggressive expansion suggests that the tech giant sees no immediate slowdown in AI demand.<\/p>\n<h2>Geopolitical Friction and Energy Stability<\/h2>\n<p>Geopolitical risks remain at the forefront as <strong>Israeli Prime Minister Netanyahu<\/strong> warned that Israel will not tolerate <strong>Turkish military entrenchment<\/strong> moving south in Syria. Simultaneously, the U.S. Navy confirmed it has <strong>disabled three vessels and boarded two others<\/strong> while enforcing a blockade against Iran, illustrating the high stakes in regional waters.<\/p>\n<p>In Europe, <strong>EU Energy Commissioner Jorgensen<\/strong> described the current electricity supply as <strong>&quot;stable&quot;<\/strong> but cautioned that the situation is expected to <strong>&quot;remain tight&quot;<\/strong> in the coming weeks. This energy uncertainty, combined with the Fed&#39;s warning of upside inflation risks, continues to support <strong>Gold&#39;s<\/strong> record-breaking rally toward the <strong>$4,500<\/strong> mark.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways FOMC minutes reveal a hawkish bias, with several officials favoring a 25-basis-point rate hike in July and many 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