It's crazy the 180 the Fed did. Two months ago Powell said they're not considering the fiscal policies and tariffs. Gave this whole speech about too many variables and not being able to know. Now all of a sudden they're forward looking and know how the tariffs will work!
— MktContext.com (@mktcontext) January 8, 2025
Federal Reserve ‘worried’ about inflationary impact of new Trump tariffs.
- Federal Reserve officials at their December meeting expressed concern about inflation and the impact that President-elect Donald Trump’s policies could have on efforts to reduce it.
- The policymakers said they will move more slowly on interest rate cuts due to the uncertainty, minutes of the meeting showed Wednesday.
- The minutes included at least four mentions about the impact that changes in immigration and trade policy could have on the U.S. economy.
Federal Reserve officials at their December meeting expressed concern about inflation and the impact that President-elect Donald Trump’s policies could have, indicating that they would be moving more slowly on interest rate cuts because of the uncertainty, minutes released Wednesday showed.
Without calling out Trump by name, the meeting summary featured at least four mentions about the effect that changes in immigration and trade policy could have on the U.S. economy.
Since Trump’s November election victory, he has signaled plans for aggressive, punitive tariffs on China, Mexico and Canada as well as the other U.S. trading partners. In addition, he intends to pursue more deregulation and mass deportations.
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