US firms have warned the Federal Reserve that the cost of President Donald Trump's tariffs will likely be borne by consumers, according to minutes of the bank's most recent rate decision.

Since returning to office in January, Trump has embarked on a stop-start tariff rollout that has unnerved investors and shaken global financial markets.

The Fed's meeting on May 6 and 7 took place after Trump had announced a 90-day pause on the most severe levies he had threatened against dozens of trading partners, and shortly before the White House unveiled trade deals with China and Britain, helping to soothe some market concerns.

At that meeting, policymakers voted to hold the US central bank's benchmark lending rate between 4.25 and 4.50 percent as they continued to fight inflation, which remains above the Fed's long-term target of 2 percent.

"Many participants remarked that reports from their business contacts or surveys indicated that firms generally were planning to either partially or fully pass on tariff-related cost increases to consumers," the Fed said in its minutes of the meeting, published on Wednesday.

Participants also "noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken," the Fed warned in its minutes. (AFP)