Odaily News The latest minutes of the Federal Reserve's May meeting show that the Fed staff admitted at their last meeting that they may face "difficult trade-offs" in the coming months, facing both rising inflation and rising unemployment. This outlook is supported by Fed officials' estimates of increased recession risks. The simultaneous rise in inflation and unemployment will force members to decide whether to prioritize tightening monetary policy to fight inflation or to support economic growth and employment through interest rate cuts. As the economy adapts to higher import taxes proposed by the Trump administration, "almost all participants said that inflation may be more persistent than expected." The Fed expects inflation to rise "significantly" this year due to the impact of tariffs, while the job market "is expected to weaken significantly," and the unemployment rate will rise above the long-term expected level of full employment by the end of this year and will remain at this level for two years. (Jinshi)