Fed Meeting Minutes: Uncertainty Has Increased Relative to the Average Level of the Past 20 Years

BlockBeats News, May 29th, the Federal Reserve meeting minutes mentioned that staff continued to note significant uncertainty surrounding trade policy and other economic policies, now seeing the projected uncertainty as higher than the average level over the past 20 years. Risks to actual economic activity were seen as tilted to the downside, with staff viewing the likelihood of an economic downturn as nearly as large as the baseline forecast. The significant upward revision to the 2025 inflation forecast was viewed as a means to balance risks around that year's inflation forecast. Subsequently, Federal Reserve staff continued to view risks around the inflation forecast as tilted to the upside, with recent increases in some inflation expectation measures raising the possibility that inflation could be more persistent than assumed in the baseline forecast. (FX168)