- Well positioned to wait for more clarity on inflation/economy
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Participants agreed that uncertainty about the outlook had increased and it was appropriate to take a cautious approach to monetary policy
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Participants agreed that risk of higher inflation and higher unemployment had risen
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Participants at the May 6–7 meeting agreed they were well positioned to wait for more clarity on the outlook
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Participants agreed that risks of higher inflation and higher unemployment had risen
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Participants agreed that uncertainty about the outlook had increased and it was appropriate to take a cautious approach to monetary policy
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Almost all participants commented on the risk that inflation could prove more persistent than expected
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Participants noted they may face “difficult tradeoffs” if inflation proved more persistent while outlooks for growth and employment weakened
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Participants saw uncertainty about their economic outlooks as unusually elevated
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Staff projection for 2025 and 2026 GDP growth was weaker than their estimate at the March meeting
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Staff cited tariff policies as implying a larger drag on activity than policies they had assumed in their prior forecast
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Committee voted to renew dollar and foreign currency swap lines
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These participants noted that a durable shift in such correlations or a diminution of perceived safe-haven status of U.S. assets could have lasting implications for the economy
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Some participants commented on changes in typical correlations across asset prices in the first half of April
This article was written by Greg Michalowski at www.forexlive.com.
