Rising tariffs could reignite inflation and weaken the U.S. dollar’s safe-haven appeal, according to the Federal Reserve’s May meeting minutes released Wednesday, according to Benzinga. Officials noted that inflation, though eased from its 2022 peak, remains “somewhat elevated” and could be pressured by new trade barriers. Some businesses plan to pass tariff costs to consumers, while others may use the inflationary environment to raise prices. Market signals in April, such as rising long-term Treasury yields alongside a falling dollar and equities, raised concerns about lasting economic shifts. Though the labor market is stable, hiring slowdowns and weak business sentiment suggest growing headwinds. The U.S. dollar index rose 0.3%.
