The majority of US Federal Reserve officials warned at its June meeting that President Donald Trump’s tariffs would have “persistent effects” on inflation amid a growing schism over when to cut interest rates.
Minutes from the Federal Open Market Committee’s meeting on June 17-18 showed that while some rate setters believed the levies would trigger a one-off price increase, most were concerned the inflationary impacts could be more sustained.
“While a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation,” according to minutes released on Wednesday.