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Federal Reserve Meeting Minutes: Significant Uncertainty Remains Regarding Tariff Effects
Summary: According to sources, the Federal Reserve released the minutes of its July meeting, in which participants generally expect short-term inflation to rise. They believe that there is still significant uncertainty about the timing, extent, and persistence of the impact of this year's tariff increases. Regarding timing, many participants noted that the full impact of higher ...
According to sources, the Federal Reserve released the minutes of its July meeting, in which participants generally expect short-term inflation to rise. They believe that there is still significant uncertainty about the timing, extent, and persistence of the impact of this year's tariff increases.
Regarding timing, many participants noted that the full impact of higher tariffs may take some time to be reflected in consumer goods and services prices. They listed several factors that could lead to this lag, including inventory accumulation in response to tariff increases, slow transmission of input cost increases to final goods and services prices, gradual updating of contract prices, maintenance of relationships between businesses and customers, tariff collection issues, and ongoing trade negotiations.
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Link: Federal Reserve Meeting Minutes: Significant Uncertainty Remains Regarding Tariff Effects [Copy]
