FOMC minutes: Participants generally agreed that the Middle East conflict could have a significant impact on the balance of risks and appropriate policy paths

On May 21, the minutes of the Federal Reserve's monetary policy meeting showed that some participants expressed concern about the scenario that high energy prices and tariffs could lead to a broader consolidation of inflationary pressures. Participants generally agreed that the Middle East conflict could have a significant impact on the balance of risk and appropriate policy paths. Several participants said interest rates would be necessary later this year if the conflict was resolved quickly and inflationary pressures eased.