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Fed minutes saw rising inflation, jobless risks as of May meeting

  • The U.S. Federal Reserve released minutes on May 6-7 showing officials faced rising inflation alongside unemployment risks.
  • Fed officials noted these risks stemmed from tariffs, delayed aggressive levies, and economic uncertainty affecting policy decisions.
  • The Fed held rates steady at 4.25%-4.5%, cited bond market volatility, and planned new projections for inflation, jobs, and growth in June.
  • The minutes indicated that nearly all participants expressed concern that inflation might remain elevated for longer than anticipated.
  • Participants agreed on a cautious approach until tariff impacts clarify, leaving the Fed sidelined until policy effects become clearer.
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By Bryan Mena, CNN Economists and top Federal Reserve policymakers see a growing risk of a weakening US labor market due to President Donald Trump's erratic trade war, according to the minutes of the central bank's latest policy meeting, released Wednesday. "The labor market was expected to weaken substantially," the minutes state. They also mention that, at the May 6 and 7 meetings, Fed economists also revised upward their inflation projections…

·Idaho Falls, United States
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Arizona Daily Sun broke the news in on Wednesday, May 28, 2025.
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