Federal Reserve officials were worried about the possibility that higher inflation resulting from the White House trade policy might lead to lasting higher inflation, even as central bank staff were noting that recession odds were high, according to the minutes of the Fed’s May 6-7 meeting, published Wednesday.

Federal Reserve officials warned during their May 6–7 meeting that the US economy is now facing a real risk of tipping into recession, as inflation remains sticky and early cracks are beginning to show in the labor market,

Federal Reserve officials agreed earlier this month to hold off on any interest-rate moves while they evaluated the impact of President Trump’s tariffs on inflation, unemployment, and the broader economy.