FOMC minutes reveal growing inflation concerns and cautious stance

Highlights of the FOMC Minutes

• Growing concern about inflation persistence amid trade policy uncertainty
• Majority of participants noted outlook for real GDP growth weaker than January projections
• Several participants expressed worry that inflation could remain higher than expected
• Almost all participants viewed risks tilted to the upside for inflation, downside for employment
• Committee agreed on cautious approach due to high policy uncertainty
• Most participants supported slowing balance sheet runoff to mitigate reserve scarcity risks
• Consumer spending shows signs of moderating from previous rapid pace
• Participants observed potential inflationary effects from tariffs could be more persistent than projected
• Many participants reported business contacts pausing investment plans due to policy uncertainty
• FOMC was well-positioned to wait for more clarity on economic outlook, minutes show

Everything is about the tariffs right now. The minutes don’t matter.

This article was written by Adam Button at www.forexlive.com.