Federal Reserve Messenger: Federal Reserve Officials Warn of 'Longer Enduring' Inflation Risks from Tariffs

According to a report by Golden Finance, Nick Timiraos, the spokesperson for the Federal Reserve, stated that when Fed officials agreed to keep interest rates unchanged at last month's meeting, they emphasized the risk of more persistent inflationary pressures brought about by tariffs. The minutes of the meeting stated that "most participants pointed out that the possibility of inflation caused by various factors being more persistent than they expected." The minutes showed that officials at last month's meeting believed that their interest rate setting was "in a favorable position" to address potential risks. The meeting minutes stated that if the labor market conditions deteriorate, the Federal Reserve may cut interest rates; If inflation worsens, the Federal Reserve may keep interest rates unchanged. But several policy makers point out that if inflation proves to be more persistent while growth and employment prospects weaken, they may "face difficult trade-offs".