Most Federal Reserve officials at their June meeting agreed that interest rate cuts could begin later this year, signaling growing confidence in moderating inflation and solid economic growth, according to the meeting minutes released Tuesday.

"In discussing their outlooks for inflation, participants noted that increased tariffs were likely to put upward pressure on prices. There was considerable uncertainty ... about the timing, size, and duration of these effects," the officials said. Most noted the potential dangers tariffs could pose to inflation, while some emphasized that such persistence might also impact inflation expectations.

Still, officials were encouraged by easing inflation and anchored expectations. The document indicates that if the data develops as expected for a few participants, they would be willing to consider reducing the target range for the policy rate at the next meeting.