US Fed officials expected slower rate cuts in 2025, say December minutes
2 months, 2 weeks ago

US Fed officials expected slower rate cuts in 2025, say December minutes

Al Jazeera  

Minutes of the December meeting show a division on decision to cut rates and the 0.25 percent cut was a ‘close call’. Trump tariffs The minutes also showed that “almost all” Fed policymakers see a greater risk than before that inflation could stay higher than they expect, in part because inflation has lingered in several recent readings and because of “the likely effects of potential changes in trade and immigration policy”. The Fed’s staff economists considered the economy’s future path particularly uncertain at the December meeting, in part because of incoming President-elect Donald Trump’s administration’s “potential changes to trade, immigration, fiscal, and regulatory policies”, which the staff said are difficult to assess in terms of how they will impact the economy. Powell also said that recent signs of stubborn inflation have caused many Fed officials to pare back their expectations for rate cuts. In addition, some officials have started to consider the potential impact of Trump’s proposals, such as widespread tariffs, on the economy and inflation next year, the minutes said.

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