Fed Meeting Minutes: Most Participants Believe Tariffs Could Have a More Persistent Impact on Inflation

July 10th: The latest released minutes of the June meeting of the Federal Reserve showed that participants noted the stability of long-term inflation expectations and emphasized the importance of maintaining stability. Several participants commented that short-term inflation expectations had risen, a development that could spill over into long-term expectations or affect price and wage setting in the near term. While a few participants pointed out that tariffs would lead to a one-time price increase without affecting long-term inflation expectations, most participants indicated that tariffs could have a more persistent effect on inflation. Some participants emphasized that this sustained effect could also influence inflation expectations. Some participants noted that as inflation has risen for some time, if inflation continues to rise, the risk of losing control of long-term inflation expectations would increase. (Jin10) [BlockBeats News]