Federal Reserve Meeting Minutes: This Year's Inflation Could Rise Due to Tariffs

On April 10th, the minutes of the Federal Reserve meeting revealed that in terms of the inflation outlook, participants assessed that inflation might increase this year due to higher tariffs. However, the magnitude and persistence of its effects were highly uncertain. Several participants noted that the ongoing balance in the labor market indicated that labor market conditions were unlikely to be a source of inflationary pressure. Several participants also pointed out that it might be particularly difficult in the near term to distinguish between relatively sustained changes in inflation and potentially more transient changes related to the implementation of tariffs. (FXStreet)