U.S. Federal Reserve officials at their last meeting acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment, an outlook buttressed by concerns about financial market volatility and Fed staff warnings of increasing recession risk,

The Federal Reserve released its minutes from its May FOMC meeting on Wednesday, which illustrated that nearly all central bank officials agreed on the long-term inflation impacts of President Trump's tariff policies.

Federal Reserve officials agreed earlier this month to hold off on any interest-rate moves while they evaluated the impact of President Donald Trump's tariffs on inflation, unemployment, and the broader economy.