The minutes of the US Federal Reserve’s two-week meeting, May 6-7, released at the end of trading on Wednesday, showed that many Fed members were concerned about the impact of tariffs on inflation and the rising likelihood of a recession.
The US Federal Reserve held interest rates steady at its last meeting for the third consecutive time, with risks of rising inflation and economic recession on the rise. Members agreed that uncertainty about the economic outlook has increased, and that this increase is directly influenced by changes in government policy. Members anticipate a weaker labor market and higher inflation expectations.
The minutes indicated that the committee will continue to await further clarification on inflation and the economic outlook before considering cutting interest rates again.