FOMC minutes reveal growign 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.