- Many policymakers would have preferred to remove easing bias from policy statement.
- Majority of participants said some policy firming would likely become appropriate if inflation were to continue above 2%.
- Participants generally judge continued elevated inflation and uncertainty over Middle East could necessitate keeping current policy stance for longer than anticipated.
- Almost all participants supported maintaining fed funds target range at this meeting.
- Participants generally observed Middle East conflict could have significant implications for balance of risks and appropriate policy path.
- Several participants indicated rate cuts would be warranted later this year in a scenario in which conflict was resolved soon and inflation pressures dissipated.
- Some participants were concerned about scenario in which elevated energy prices and tariffs could result in inflation pressures becoming embedded more broadly.
- Fed staff economic Outlook projections was slightly stronger than for March meeting.
This article was written by Greg Michalowski at investinglive.com.
