Fed meeting notes that participants generally expect inflation to remain high in the near term

The Federal Reserve meeting notes mentioned that with regard to the inflation outlook, participants generally expected inflation to remain high in the short term with appropriate monetary policy, followed by a gradual decline to 2%. Some participants noted that business contacts indicated that they would gradually increase prices due to higher input costs due to tariffs. Although there is still uncertainty about the impact of tariff increases on inflation this year, most participants expect these effects to be fully felt by the end of next year. Some participants felt that the labor market is not expected to be a source of inflationary pressure.