The recent minutes from the Federal Open Market Committee highlight significant concerns about rising inflation and unemployment, primarily driven by tariffs implemented during the current administration. Fed officials noted that persistent inflation risks might necessitate difficult tradeoffs, and the potential for stagflation looms large. While they expressed confidence in the overall economy, they acknowledged that the job market is expected to weaken substantially due to these tariffs. The minutes reveal that U.S. firms are likely to transfer the costs of tariffs to consumers, stirring fears of heightened price levels and market volatility. As the Fed navigates these challenges, officials aim to remain well-positioned while awaiting clarity on the economic outlook.