Federal Reserve Minutes: The U.S. economy faces risks of high inflation and low rise.

GateUser-6433627c · 2025-04-09T18:18:09+00:00

The Federal Reserve (FED) policymakers at the recent meeting considered that the U.S. economy faces the risks of rising inflation and slowing growth, which may require difficult trade-offs. The Trump administration's tariff plan has increased uncertainty, leading participants to prefer a cautious approach, such as maintaining high Intrerest Rate or cutting rates. The uncertainty in the economic outlook has increased, with inflation risks on the rise and employment risks on the decline.

GateUser-6433627c

2025-04-09 18:18:09

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On April 10, The Federal Reserve (FED) policymakers almost unanimously agreed during last month’s meeting that the U.S. economy faces the risks of rising inflation and slowing growth occurring simultaneously. Some policymakers pointed out that the FED may face a “difficult trade-off.” The meeting held on March 18 to 19 took place after the initial tariff plan of the Trump administration, which increased uncertainty regarding the economic outlook and led attendees to lean towards a “cautious approach.” If inflation persists, they may choose to maintain higher interest rates for a longer period, or if the weak economy requires more direct attention, they could opt for rate cuts. “Participants assessed that uncertainty regarding the economic outlook has increased, and almost all attendees believe that inflation risks tend to be upward, while employment risks tend to be downward.” (Jin10)

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