The Federal Reserve kept fixed interest rates at its meeting in January. Minutes of this meeting, Released on WednesdayMost of the Federal Reserve officials have revealed policy support at restful levels.
“Many participants indicated that the committee can retain the policy price at a restricted level if the economy remains strong and that inflation remained high, while many of them noticed that policy can be reduced if the conditions of the labor market deteriorated, economic activity stumbled, or inflation returned to 2 The percent faster than expected, “I read the minutes.
Participants noted that the committee was “in a good position” to take time to assess the “advanced expectations of economic activity” and that more progress is needed in inflation before setting rates.
On the inflation front, “Participants generally referred to the risks of the upward trend of inflation. In particular, the participants pointed to the possible effects of potential changes in trade and immigration policy, or the possibility of geopolitical developments in disrupting supply chains, or stronger than expected. Home spending.” .
Last week, Trump announced a 25 % global tariff on steel and aluminum imports, to be valid on March 12. He later ordered that federal agencies study the multiple tariffs on commercial partners.
Recently, Trump said he expects additional duties on cars, potatoes and pharmaceutical preparations. A flat tariff “in the 25 % neighborhood” applies to all foreign auto manufacturers and start as soon as possible.
The 25 % tariffs are scheduled to come on Mexico and Canada next month, while 10 % duties have already been implemented in China.
Besides uncertainty in politics, the minutes also highlighted modern economic unknown, including “the values of the long -term neutral policy rate, the potential growth rate of the economy, and the maximum level of employment.” These doubts “will remain an important factor that affects decision -making.”