Federal Reserve Meeting Minutes: Most Participants Believe Tariffs May Have a More Lasting Impact on Inflation

According to ChainCatcher, the latest minutes from the Federal Reserve's June meeting show that participants noted long-term inflation expectations remain stable, and maintaining this stability is very important. Several participants commented that short-term inflation expectations have already risen, and this development could spill over into long-term expectations or affect price and wage setting in the short term.

While a minority of participants pointed out that tariffs would lead to a one-time increase in prices without affecting long-term inflation expectations, the majority noted that tariffs could have a more lasting impact on inflation. Some participants emphasized that this sustained impact could also influence inflation expectations.

Some participants noted that since inflation has been rising for some time, if inflation continues to climb, the risk of long-term inflation expectations becoming unanchored will increase.