Federal Reserve meeting minutes: Maintaining a stricter monetary policy stance would be appropriate if tariffs cause inflation to be higher than expected

The recently released minutes of the Federal Reserve's June meeting revealed that participants noted that maintaining a tighter monetary policy stance would be appropriate if tariffs led to higher-than-expected inflation that persisted longer than expected, or if medium- or long-term inflation expectations rose significantly, especially with stable labor market conditions and economic activity. However, if labor market conditions or economic activity weakened substantially, or if inflation continued to decline and inflation expectations remained well-anchored, it would be appropriate to establish a less restrictive monetary policy stance. Participants noted that the Committee could face difficult trade-offs if high inflation proved more persistent while the employment outlook weakened. [Odaily Planet Daily]