Fed Minutes Indicate Commodity Cost Increases Will Be Lower Than Expected

According to ChainCatcher, citing Jinshi News, the Federal Reserve has released the minutes of its July meeting, projecting that real GDP growth from this year through 2027 will be similar to the forecasts made at the June meeting. Staff noted that the increase in the cost of imported goods, including tariffs, will be smaller than previously predicted and that the timing of these increases will be delayed. Although financial conditions are expected to support output growth, weaker-than-expected spending data and the impact of net immigration on population growth falling short of assumptions will continue to affect the economic outlook. The unemployment rate is expected to rise above the natural rate of unemployment around the end of this year and remain above the natural rate through 2027.