The Federal Reserve meeting minutes signaled that policymakers expect, with appropriate monetary policy, the inflation outlook to show elevated readings in the near term before a measured convergence toward the 2% target. Participants framed the path as gradual and conditional, emphasizing that current price dynamics are consistent with short‑term persistence rather than an immediate structural shift in inflation expectations.
Minutes also noted that corporate contacts plan to incrementally raise prices amid input cost pressures tied to tariffs, though the aggregate inflationary impact of recent tariff actions remains uncertain; most officials judged these effects would be fully realized by the end of next year. Several participants added that the labor market was not expected to materially add to inflationary pressures over the projection horizon.