02:15 PM EDT, 05/28/2025 (MT Newswires) -- The Federal Open Market Committee can wait for more clarity on the progression of the economy before making changes to policy, minutes of the May 6-7 FOMC meeting released Wednesday showed.
"In considering the outlook for monetary policy, participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the Committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity," the minutes showed. "Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer."
The participants' discussion was reflected in the FOMC's post-meeting statement that indicated upside risks for both inflation and unemployment and have been echoed in recent comments from Fed officials.
There was a general concern among the participants that tariffs could lead to more persistent inflation. While there has been some pullback on tariffs plans from the Trump administration, the uncertainty remains a key factor.