JUST IN: The FED Meeting Minutes Are Released

The minutes of the meeting of the Federal Reserve (FED) have been released. According to the minutes, the FED decided to significantly fall the pace of balance sheet reduction last month. However, some participants indicated that there was "no compelling reason" for this decision. According to the minutes of the meeting, policymakers almost unanimously agreed that the U.S. economy faces the risks of rising inflation and slowing growth, with some members noting that the Fed may have to face "difficult choices." The meeting was held on March 18-19, taking place after the first tariff plan of the Trump administration. This created uncertainty in economic prospects and led participants to advocate for a more cautious approach. It was stated that if inflation becomes persistent, interest rates could be kept high for a long time, and if the economy weakens further, interest rate cuts could be on the agenda. The Fed's meeting minutes show that inflation has slowed significantly over the past two years but remains above the agency's long-term target of 2%. Some participants noted that inflation data in the first two months of the year was higher than expected. The slowdown in housing inflation parallels the cooling of the rental market, while inflation in the non-housing services sector remains high. Rising prices in non-market services in particular have drawn attention. Some members, noting that core goods inflation has risen, indicated that this may be related to the impact of increased tariff expectations. The minutes also stated that inflation could rise this year due to the impact of higher tariffs, but there is significant uncertainty about how long this impact will last. According to Nick Timiraos, a columnist for the Wall Street Journal and "Fed spokesperson", Fed officials last month emphasized the risks of inflationary pressures related to persistent tariffs as they decided to keep interest rates unchanged. "Most participants noted that the inflationary impact from various factors may last longer than expected," the minutes stated. Policymakers believe current interest rates are "well positioned" to hedge against potential risks. However, if the labor market weakens, interest rates could be cut; If inflation worsens, interest rates will remain the same. Some members noted that the Fed may have to "strike a difficult balance" if inflation persists and the outlook for growth and employment weakens.