FOMC Minutes: Officials See Slower Return to 2% Inflation; Further Tightening Still on the Table

Minutes from the Federal Reserve's April FOMC meeting show policymakers remain concerned that inflation is still running above the 2% goal. Officials cited higher energy prices, the Middle East conflict, tariffs, and AI-related investment costs as factors adding to upside inflation risks. Most participants said it could take longer than previously expected for inflation to return to target, and many noted additional policy tightening may be warranted if inflation stays persistently elevated. The minutes also indicated rate cuts could be appropriate if inflation continues to cool or if labor market conditions weaken materially.