The Federal Reserve releases minutes from its May policy meeting: Uncertainty in economic outlook further intensifies.

On May 28, local time, the Federal Reserve released the minutes of the Federal Open Market Committee meeting on May 6-7. The minutes show that the Federal Reserve agreed to maintain the federal funds rate target range at 4.25%-4.5%. Participants agreed that when considering the magnitude and timing of further adjustments to the federal funds rate target range, the committee will carefully assess subsequent data, evolving outlook, and risk balance. The minutes stated that in assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of future information on economic outlook. If risks emerge that could impede the committee's goals, they will be prepared to adjust the monetary policy stance as appropriate. Participants stated that their evaluations will consider a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international situations. The committee's assessment is that the uncertainty of economic outlook has increased, with risks rising for both increased unemployment and inflation. Participants noted that if inflation persists while economic growth and job prospects weaken, the committee may face difficult trade-offs. The eventual magnitude of government policy adjustments and their impact on the economy are highly uncertain. In this context, all participants believe that maintaining the federal funds rate target range at 4.25%-4.5% is appropriate. When considering the outlook for monetary policy, participants unanimously believe that, given the continued robust economic growth and labor market, the committee is fully capable of waiting for a clearer outlook on inflation and economic activity. It is appropriate to be cautious until the net economic effects of a series of government policy adjustments become clearer.