๐จ ๐ ๐๐ ๐๐ข๐ง๐ฎ๐ญ๐๐ฌ ๐๐๐ฏ๐๐๐ฅ ๐๐จ๐ฎ๐ ๐ก ๐๐ฉ๐จ๐ญ ๐๐ก๐๐๐
Fed officials at May meeting warned of "difficult tradeoffs" as they face potential rising inflation AND unemployment simultaneously, driven by uncertainty over Trump tariff policies.
Key points:
๐นFed held rates at 4.25-4.5% due to policy uncertainty
๐นStaff projected "markedly" higher inflation from tariffs
๐นRecession risks increased, unemployment expected to rise
๐นFed essentially sidelined until tariff plans finalized in July
๐นNext meeting June 17-18 with new projections
The central bank finds itself in an unusual bind: potentially having to choose between fighting inflation or supporting jobs.
