Intensifying trade frictions between the United States and its trading partners have most Federal Reserve officials increasingly troubled.
Central bankers still see the US economy building steam under Fed Chairman Jerome Powell, and plan to stay on course in gradually lifting interest rates this year as unemployment declines and inflation stays on target.
But minutes of a Fed meeting released Thursday showed they are worrying more about a possible snag for the economy — the Trump administration's trade policies.
The minutes, from the Fed's June 12-13 meeting, show policy makers discussed the possibility of a tit-for-tat trade war with China and other major US allies. On Friday, the United States and China will each impose a tariff on $34 billion of the other's goods.
Related: The US-China trade war is about to get real
"Most participants noted that uncertainty and risks associated with trade policy intensified and were concerned that such uncertainty and risks eventually could have a negative effects on business sentiment and investment spending," according to the minutes.