FOMC Minutes Show Fed Still Wary Of Higher Inflation Due To Trump Tariffs

The recently released FOMC minutes reveal a cautious stance by the Federal Reserve as global trade tensions reach a fervent pitch. Participants say Trump tariffs are triggering new inflationary concerns, requiring a tentative approach toward interest rate cuts.

FOMC Minutes Reveal Inflationary Fears

The Federal Reserve has released the minutes of the last FOMC meeting, shedding insights into its policy decision to keep interest rates steady. According to the document, the Fed disclosed that it kept a keen eye on national economic indicators and paid particular attention to macroeconomic developments.

Right off the bat, the minutes indicated a consensus on falling inflation metrics in recent months, with projections coming in lower than expected. However, participants say heightened Trump tariffs are “likely to put upward pressure on prices,” urging a cautious approach toward rate cuts.

Despite the inflationary concerns, participants are uncertain over the timeline of tariff-induced inflation. Amid the raging debate, the minutes reveal that participant agree that signing of trade deals will limit the effect of tariff-related inflation.

Trump has sent trade letters imposing tariffs on a handful of countries including Iraq, Algeria, and Sri Lanka.

This is a developing story.

Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

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