Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Fed worried it could face ‘difficult tradeoffs’ if tariffs reaggravate inflation, minutes show
Economy

Fed worried it could face ‘difficult tradeoffs’ if tariffs reaggravate inflation, minutes show

Last updated: May 28, 2025 1:00 pm
Share
Fed worried it could face ‘difficult tradeoffs’ if tariffs reaggravate inflation, minutes show
SHARE

The Federal Reserve officials gathered earlier this month to discuss the potential impact of tariffs on inflation and interest rate policy. The minutes from the May 6-7 meeting revealed concerns about the uncertainty surrounding fiscal and trade policies, leading to a decision to maintain steady interest rates.

According to the meeting summary, participants acknowledged the increased uncertainty in the economic outlook and agreed to take a cautious approach until the effects of government policy changes became clearer. There was a recognition that the Committee might face difficult tradeoffs if inflation persisted while growth and employment outlooks weakened.

Despite concerns about inflation and trade policy, officials noted that economic growth remained solid, the labor market was balanced, and consumer spending continued. The Federal Open Market Committee (FOMC) maintained its benchmark federal funds rate in a target range of 4.25%-4.5%.

The post-meeting statement highlighted the growing uncertainty in the economic outlook and the challenges of achieving full employment and low inflation amid policy uncertainty. Policymakers reiterated their commitment to waiting for more clarity on fiscal and trade policies before considering any rate cuts.

Since the meeting, market expectations have shifted, with traders now pricing in minimal chances of a rate cut until September. The easing of tensions between the U.S. and China following the meeting helped boost Wall Street, although bond yields continued to rise.

President Trump’s pressure on the Fed to lower rates amidst the trade war and inflation concerns was met with resistance from Fed Chair Jerome Powell, who emphasized the central bank’s independence. The meeting also addressed the Fed’s five-year policy framework, focusing on the need for a robust policy adaptable to various economic conditions.

See also  US second-hand clothing exports help combat waste, boost Guatemala’s economy

Overall, the FOMC’s decision to maintain interest rates reflects a cautious approach in light of economic uncertainties. The Fed remains vigilant in monitoring inflation, trade policies, and economic indicators to ensure a balanced and sustainable monetary policy.

TAGGED:DifficultFaceFedInflationMinutesreaggravateShowTariffsTradeOffsWorried
Share This Article
Twitter Email Copy Link Print
Previous Article Elon Musk’s AI Chatbot Grok Is Reciting Climate Denial Talking Points Elon Musk’s AI Chatbot Grok Is Reciting Climate Denial Talking Points
Next Article Sheinelle Jones ‘Focusing on Her Family’ After Husband’s Death: Source Sheinelle Jones ‘Focusing on Her Family’ After Husband’s Death: Source
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Julian McMahon Dead: ‘Nip/Tuck’ Star Was 56

Remembering Julian McMahon: A Talented Actor Gone Too Soon Julian McMahon, the captivating Australian actor…

July 4, 2025

 ‘The Last of Us’ Star Isabela Merced on Dina and Ellie Sex Scene

Dina's character arc in "Day One" showcases her importance in Season 2 of "The Last…

May 4, 2025

Art Bridges Supports Museums Nationwide

Art Bridges is a groundbreaking initiative that aims to bring American art out of storage…

July 21, 2025

Why don’t cars have hood ornaments anymore? 

In today's modern automotive world, hood ornaments have become a rarity on most vehicles. The…

December 31, 2024

Most-Watched Super Bowl Ads 2025: YouTube Top 10 Ranking

Super Bowl LIX was a lopsided affair as the Philadelphia Eagles dominated the Kansas City…

February 10, 2025

You Might Also Like

Fresnillo signs agreement to acquire Probe Gold for 8m
Economy

Fresnillo signs agreement to acquire Probe Gold for $558m

October 31, 2025
SOC teams face 51-second breach reality—Manual response times are officially dead
Tech and Science

SOC teams face 51-second breach reality—Manual response times are officially dead

October 31, 2025
Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?