The latest released minutes from the Federal Reserve's June meeting indicate that participants noted if tariffs lead to an inflation rate higher than expected, and if the duration is more prolonged than anticipated, or if medium- to long-term inflation expectations show a significant rise, then maintaining a stricter monetary policy stance would be appropriate, especially in the context of stable labor market conditions and economic activity. However, if labor market conditions or economic activity materially weaken, or if inflation continues to decline, and inflation expectations remain well anchored, then establishing a less restrictive monetary policy stance would be suitable. Participants noted that if high inflation persists and employment prospects weaken, the committee may face difficult trade-offs.