Fed, Risk and Minutes
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The Federal Reserve released its minutes from its May FOMC meeting on Wednesday, which illustrated that nearly all central bank officials agreed on the long-term inflation impacts of President Trump's tariff policies.
Global investors closely track the US Federal Reserve's monetary policy decisions, which have a considerable impact on liquidity in stock, bond, and other financial markets.
Federal Reserve policymakers judged the risks of both higher unemployment and inflation had risen since their previous meeting in March, primarily due to the potential impact of tariffs, according to the minutes of the Federal Open Market Committee's meeting ended May 7.
Trump has attacked Powell over the Fed’s decision to not lower interest rates, but recently said he has no intention of trying to fire Powell.
Federal Reserve Governor Adriana Kugler said on Thursday she’s closely watching markets amid substantial shifts in trade policy and possible diminished investor desire to hold U.S. dollar assets.