Fed meeting notes inflation could rise this year due to tariffs

With regard to the outlook for inflation, participants judged that inflation could rise this year in response to higher tariffs, albeit with considerable uncertainty about the magnitude and persistence of the impact, according to Federal Reserve meeting notes. Several participants noted that the continuing balance in the labor market suggested that labor market conditions were unlikely to be a source of inflationary pressure. Several participants noted that it may be particularly difficult to distinguish between relatively persistent changes in inflation and more transient changes that may be related to the introduction of tariffs in the coming period.