Minutes show Fed officials divided over tariff-driven inflation

Driving the news: Minutes of the Federal Open Market Committee meeting that concluded June 18 show a key disagreement — whether the policymakers should look through any bump in prices due to new import taxes, or worry more about ongoing inflation.

• The minutes state that while "a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation."

Between the lines: Fed governors Christopher Waller and Michelle Bowman, both appointed by President Trump, have put themselves in the former group, with public comments since the meeting advocating for rate cuts sooner rather than later.

• However, Chair Jerome Powell and most of the Fed's policy committee are more wary that, coming on the heels of years of elevated inflation, a resurgence in prices due to import taxes might prove harder to contain.

What they're saying: "Participants agreed that although uncertainty about inflation and the economic outlook had decreased, it remained appropriate to take a careful approach in adjusting monetary policy," the minutes said.

• That stance has angered President Trump and some other Republicans, who believe the Fed should be cutting interest rates aggressively.