While generally saying the labor market remains solid and inflation elevated but showing progress toward the Fed’s 2% annual target, the minutes reflect a mixed assessment of whether the tariffs will spur inflation or be more of a one-time hit that will not lead to higher long-term price increases.

ToplineThe Federal Reserve still believes tariffs complicate the interest rate cut picture, even as President Donald Trump attacks the central bank. Key Facts“Most” Fed staff believe the central bank will lower interest rates in 2025,

The emerging divide among Federal Reserve officials over the outlook for interest rates is being driven largely by differing expectations for how tariffs might affect inflation, a record of policymakers’ most recent meeting showed.