U.S. Federal Reserve officials at their last meeting acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment, an outlook buttressed by concerns about financial market volatility and Fed staff warnings of increasing recession risk,

Fed officials noted, “Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate,” according to the statement released alongside the decision.

Officials at the Federal Reserve have adopted a wait-and-see approach to policy moves amid extreme uncertainty about the economic outlook.