Fed sees inflation risks as skewed to the upside, minutes show

Minutes from the last Federal Reserve meeting read, “The staff continued to view the uncertainty around the baseline projection as similar to the average over the past 20 years, a period that saw a number of episodes during which uncertainty about the economy and federal policy changes was elevated. The staff judged that the risks around the baseline projections for economic activity and employment were roughly balanced. The risks around the baseline projection for inflation were seen as skewed to the upside because core inflation had not come down as much as expected in 2024 and because changes to trade policy could put more upward pressure on inflation than the staff had assumed.”