Fed Minutes: Fed staff forecast for inflation in 2026 and 2027 was higher than in April forecast, reflecting the Middle East war and effects

Participants Generally Saw Upside Risks To Price Stability As Elevated - Participants Generally Saw Downside Risks To Maximum Employment Goal Had Moderated A Bit - A Majority Of Participants Saw Advantages In Shortening Policy Statement - Most Participants Preferred Not To Repeat Previous Statement Language Suggesting An Easing Bias - Some Participants Welcomed Review Of Communications Tools, Practices - FOMC Committee Members Concurred Statement Would Convey Commitment To Dual Mandate Goals, Emphasize FOMC Will Deliver Price Stability - In Such Scenarios Almost All Of Those Participants Indicated Some Policy Firming Would Likely Be Warranted - Most Participants Pointed To Scenarios In Which Inflation Would Stay Elevated Due To AI-Related Demand, Middle East Conflict Or Tariffs - Fed Inflation In 2026 And 2027 Staff Forecast Was Higher Than In April Forecast, Reflecting Middle East War, Effects Of Ai Buildout - Fed Staff GDP Growth Outlook Was A Bit Lower Than April Forecast