Fed minutes may show scope of tariff debate ahead of Trump’s ‘liberation day’

In March, Federal Reserve officials expressed rising uncertainty regarding stagflation risks before President Trump’s tariff announcement, which heavily influenced economic forecasts.

The imposition of tariffs significantly escalated average import taxes and is expected to affect inflation and growth, shifting the Fed’s projections towards a more cautious outlook.

Chair Jerome Powell indicated that the Fed might need to adjust interest rates more than previously anticipated, as uncertainties surrounding the economic environment have intensified.