Federal Reserve meeting minutes: High energy prices in the short term will continue to put upward pressure on overall inflation.

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ME News, May 21 (UTC+8), the Federal Reserve meeting minutes show that participants expect high energy prices to continue exerting upward pressure on overall inflation in the near term. Participants generally anticipate that the impact of tariffs on core goods inflation will gradually diminish within this year. However, some participants noted that tariff rates could increase further above current levels, leading to greater upward pressure on inflation. Several participants emphasized that after several years of inflation above 2%, high inflation rates could have a larger impact on wage and price-setting decisions. Nearly all participants pointed out that the conflict in the Middle East could persist for a long time, or even if the conflict ends, oil and other commodity prices may remain elevated for longer than expected. In this scenario, participants expect that factors such as supply chain disruptions, high energy prices, or the pass-through of rising input costs to other prices will continue to push up inflation. The vast majority of participants noted that the time needed for inflation to return to the Committee’s 2% target could be longer than they previously expected, with risks increasing. (Source: Jin10)
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