Federal Reserve could be in 'difficult' spot with higher prices, slower hiring

WASHINGTON (AP) — The prospect of high inflation stemming from widespread tariffs along with weaker hiring could put the Federal Reserve in a difficult spot, Fed policymakers said in minutes from last month's meeting.

The minutes, released Wednesday, said that the Fed could keep its benchmark interest rate unchanged if inflation remained stubbornly elevated. And they said it could cut its rate if growth slowed and unemployment rose. The minutes were for the Fed's March 18-19 meeting.

But if both happened at the same time, the Fed “may face difficult tradeoffs,” some of the 19 officials on the central bank's interest-rate setting committee said. Rising unemployment can often lead to a recession, when the Fed would normally slash its key rate to support more borrowing and spending and stimulate the economy. Yet Fed officials would likely be reluctant to cut if inflation rose, because it usually seeks to cool higher prices by keeping its key rate unchanged — or even raising it if necessary.

The minutes reflect discussions among Fed officials before President Donald Trump announced sweeping tariffs April 2 on nearly 60 countries, along with a 10% tariff on nearly all nations. Trump said Wednesday that he had paused the tariffs for 90 days, though the 10% duty would remain, as well as a huge 125% tax on imports from China.

The minutes also said that the tariffs that had been announced prior to the March meeting — on steel, aluminum, and on many imports from Canada and Mexico — had already caused many companies to delay hiring and raise prices.

Several Fed officials, according to the minutes, said that their business contacts “were already reporting increases in costs, possibly in anticipation of rising tariffs,” or “had indicated willingness to pass on to consumers higher input costs that would arise from potential tariff increases.”

Many of those same business contacts “reported pausing hiring decisions because of elevated policy uncertainty,” the minutes said.

In remarks last Friday, Fed Chair Jerome Powell said the April 2 tariffs would likely raise inflation and slow growth. He also noted that their impact would likely be temporary, but said there was a heightened chance that they could persistently raise inflation.

Inflation has come down sharply from its peak in June 2022, but it has remained stubbornly elevated even before the imposition of duties. Consumer prices were 2.8% higher in February compared to a year ago, though March figures will be released early Thursday and are expected to show inflation declining to 2.6%.

FILE - The Federal Reserve, which is under construction, is seen, Monday, April 7, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)

PARIS (AP) — A Paris court is to rule on Monday in a case involving 10 people accused of cyberbullying French first lady Brigitte Macron by spreading false online claims about her gender and sexuality, allegations her daughter said damaged her health and family life.

The defendants, eight men and two women aged 41 to 60, are accused of posting “numerous malicious comments” falsely claiming that President Emmanuel Macron ’s wife was born a man and linking the 24-year age gap with her husband to pedophilia. Some of the posts were viewed tens of thousands of times.

Brigitte Macron did not attend the two-day trial in October.

Her daughter, Tiphaine Auzière, testified about what she described as the “deterioration” of her mother’s life since the online harassment intensified. “She cannot ignore the horrible things said about her,” Auzière told the court. She said the impact has extended to the entire family, including Macron’s grandchildren.

Defendant Delphine Jegousse, 51, who is known as Amandine Roy and describes herself as a medium and an author, is considered as having played a major role in spreading the rumor after she released a four-hour video on her YouTube channel in 2021.

The X account of Aurélien Poirson-Atlan, 41, known as Zoé Sagan on social media, was suspended in 2024 after his name was cited in several judicial investigations.

Other defendants include an elected official, a teacher and a computer scientist. Several told the court their comments were intended as humor or satire and said they did not understand why they were being prosecuted. They face up to two years in prison if convicted.

The case follows years of conspiracy theories falsely alleging that Brigitte Macron was born under the name Jean-Michel Trogneux, which is actually the name of her brother. The Macrons have also filed a defamation suit in the United States against conservative influencer Candace Owens.

The Macrons, who have been married since 2007, first met at the high school where he was a student and she was a teacher. Brigitte Macron, 24 years her husband’s senior, was then called Brigitte Auzière, a married mother of three.

Emmanuel Macron, 48, has been France’s president since 2017.

FILE - French President's wife Brigitte Macron arrives ahead of the ceremony outside "La Belle Equipe" bar, Thursday Nov. 13, 2025 in Paris as part of ceremonies marking the 10th anniversary of terrorist attacks. (Ludovic Marin, Pool photo via AP, File)