Fed officials are worried about the inflation impacts from Trump's policies, minutes show

Published On Jan 8, 2025, 2:00 PM

The minutes from the Federal Reserve's December meeting indicate a cautious approach toward monetary policy, as officials are concerned about inflation and the potential economic impacts of incoming President Trump's policies. The Fed is planning to slow the pace of interest rate cuts, reducing the anticipated number from four to two for 2025. They noted that inflation remains above their target and expressed uncertainty about future economic developments due to trade and immigration policy changes. The officials emphasized a careful assessment of economic data going forward, suggesting that any further rate reductions may be less frequent and dependent on the evolving economic landscape.