Federal Reserve Faces Economic Challenges Amid Inflation and Growth Concerns

According to Odaily, Federal Reserve policymakers nearly unanimously agreed at last month's meeting that the U.S. economy is facing the simultaneous risks of rising inflation and slowing growth. Some policymakers noted that the Fed might face 'difficult trade-offs.' The meeting, held on March 18-19, followed the initial tariff plans by the Trump administration, which increased uncertainty about the economic outlook and led participants to lean towards a 'cautious approach.' If inflation persists, options include maintaining higher interest rates for an extended period, or if a weak economy requires more direct attention, considering rate cuts. Participants assessed that economic uncertainty has increased, with almost all attendees believing that inflation risks tend to be upward, while employment risks tend to be downward.