Fed officials fretted about 'likely effects' of Trump trade and immigration policies
Published On Jan 8, 2025, 3:05 PM
The article discusses Federal Reserve officials expressing concern over the potential impact of Donald Trump's trade and immigration policies on inflation. In their last meeting, they noted increased upside risks for inflation and moderated their expectations for future rate cuts due to stronger inflation readings and uncertainty surrounding the new administration's policies. Some officials believe Trump's proposals, possibly involving tariffs and immigration restrictions, might lead to persistent inflation, complicating future monetary policy decisions. Despite these concerns, some Fed members still support rate cuts, expecting inflation to improve in the medium term.
Stock Forecasts
SPY
Negative
Predictions indicate that elevated inflation concerns may hinder the Fed's ability to aggressively cut interest rates further, particularly if Trump's administration implements tariffs that could raise costs. This situation creates headwinds for growth stocks that are sensitive to interest rate changes.
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