◼️ Participants agreed that the risks of rising inflation and unemployment have increased.
◼️ Most participants pointed out the risk that inflation may be more persistent than expected.
◼️ Participants noted that they may face "difficult trade-offs" if inflation continues while growth and employment expectations deteriorate.
◼️ Participants viewed the level of uncertainty regarding economic forecasts as unusual and significantly high.
◼️ The working group's growth forecasts for GDP in 2025 and 2026 were weaker than those made in the March meeting.
◼️ The working group indicated that tariff policies are placing a greater burden on economic activity compared to their previous estimates.
◼️ The committee voted to renew the dollar and foreign currency swap lines.
◼️ Some participants indicated that a permanent shift in these correlations or a decline in the consideration of U.S. assets as a safe haven could have long-term effects on the economy.
◼️ Some participants commented on changes in the usual correlations between asset prices during the first half of April.
◼️ Officials stated that the Fed may face difficult trade-offs if inflation continues while the labor market weakens.
◼️ Participants agreed that they are in a good position to wait until the economic outlook becomes clearer.
◼️ Participants agreed that the level of uncertainty regarding forecasts has increased, and it was appropriate to adopt a cautious approach in monetary policy.
#Monetary_Policy#Write2Earn