Minutes of the Federal Reserve Meeting: Most participants believe that tariffs may have a more lasting impact on inflation.

The latest minutes from the June meeting of the Federal Reserve showed that participants noted that it is crucial to maintain stable long-term inflation expectations. Several participants commented that short-term inflation expectations have already risen, which could spill over into long-term expectations or affect price and wage setting in the short term. While a few participants mentioned that tariffs will lead to a one-time price increase and not affect long-term inflation expectations, most participants indicated that tariffs could have a more lasting impact on inflation. Some participants emphasized that this lasting impact could also affect inflation expectations. Some participants pointed out that as inflation has been rising for some time, if it continues to rise, the risk of losing control over long-term inflation expectations will increase.