Federal Reserve Meeting Minutes: Most Participants Believe Tariff Increases or Heightened Policy Uncertainty Will Suppress Labor Demand

According to a report by Jinse Finance, the latest minutes from the Federal Reserve's June meeting indicate that participants judged labor market conditions to remain solid, at or near estimated maximum employment levels. Several participants noted that the recent stability in the labor market reflects a slowdown in both hiring and layoffs. Some also mentioned that their contacts and business survey respondents reported pausing hiring decisions due to increased uncertainty. A few participants pointed out that immigration policies are reducing labor supply. Looking ahead, most participants believe that higher tariffs or increased policy uncertainty will dampen labor demand, and many expect conditions to gradually soften. Some participants noted that certain indicators have already shown signs of weakness, and they will closely monitor for further signs of labor market deterioration. A few participants observed that wage growth continues to slow and is not expected to generate inflationary pressures.