Federal Reserve Meeting Minutes: If Tariffs Cause Higher Than Expected Inflation, Maintaining a Stricter Monetary Policy Position Will Be Appropriate
TechFlame
2025-07-09 21:08
TechFlame2025-07-09 21:08
English
According to the latest minutes of the US Federal Reserve's June meeting released by TechFlame News, participants pointed out that if the imposition of tariffs causes the inflation rate to be higher than expected and lasts longer than expected, or if medium- or long-term inflation expectations rise significantly, then it would be appropriate to maintain a stricter monetary policy stance, especially when labor market conditions and economic activity are stable. However, if labor market conditions or economic activity substantially weaken, or if inflation continues to decline and inflation expectations remain good and stable, then it would be appropriate to establish a less restrictive monetary policy stance. Participants pointed out that if high inflation persists and employment prospects weaken, the Commission may face difficult trade-offs.