Stock Market Update

[BRIEFING.COM] Markets are a hair higher following the release of the FOMC's Minutes from the May meeting which showed Fed officials agreed that given solid growth and a strong labor market, it's appropriate to take a cautious, data-dependent approach to policy amid rising uncertainty about the economic outlook.

Currently, the S&P 500 (-0.15%) is in second place, down less than 9 points.

Other important points from the Minutes included:

• In discussing risk-management considerations that could bear on the outlook for monetary policy, participants agreed that the risks of higher inflation and higher unemployment had risen.
• Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer.
• Participants noted that the Committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken.

Taken together, participants saw the uncertainty about their economic outlooks as unusually elevated. Overall, participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases.

Yields are little changed compared to their pre-Minutes levels, the yield on the benchmark 10-yr note now up about three basis points at 4.485%.