Fed meeting minutes: Inflation and unemployment risks have risen as of May meeting

Odaily Planet Daily News: The latest released minutes of the Federal Reserve’s May meeting show that Federal Reserve staff admitted at the last meeting that they may face "difficult trade-offs" in the coming months, facing both rising inflation and rising unemployment. That outlook was supported by Federal Reserve officials’ estimates of increased recession risks. The simultaneous rise in inflation and unemployment will force members to decide whether to prioritize tightening monetary policy to fight inflation or supporting economic growth and employment by lowering interest rates. As the economy adjusts to higher import taxes proposed by the Trump administration, "almost all participants said that inflation could be more persistent than expected." The Fed expects inflation to rise “significantly” this year due to the impact of tariffs, while the job market is “projected to weaken materially,” with the unemployment rate rising above the long-run expected level of full employment by the end of this year and remaining there for two years. (Golden Ten)