Fed minutes: Uncertainty ‘elevated’ as risks of higher inflation and unemployment rise
By CHRISTOPHER RUGABER
WASHINGTON (AP) — Federal Reserve officials agreed earlier this month to hold off on any interest-rate moves while they evaluated the impact of President Donald Trump’s tariffs on inflation, unemployment, and the broader economy.
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According to minutes from their May 6-7 meeting, released Wednesday, “almost all” of the 19 officials that participate in the Fed’s meetings on policy saw a risk that “inflation could prove to be more persistent than expected.” The policymakers showed greater concerns about higher inflation than rising unemployment, the minutes showed, a key reason they left rates unchanged.