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Federal reserve The decision-makers noted the potential impact of trade policy changes such as higher rates contributing to concerns concerning high inflation in the minutes of their last meeting.
The minutes published on Wednesday of the Federal Open Market Market (FOMC) meeting in January has shown that political decision-makers “have generally highlighted the risks up Inflation prospects. “”
“In particular, participants have cited the possible effects of potential changes in commercial and immigration policy, the potential for geopolitical developments to disrupt supply chains, or spending on stronger than expected,” said the Fed minutes.
The Fed said that even if it still sees inflation decreasing to the target rate of 2% of the central bank, “other factors have been cited as having the potential to hinder the disinflation process”, including costs higher resulting from potential rates.
The president of the Fed, Jerome Powell, and the Central Bank decision -makers held stable interest rates at their last meeting. (Al Drago / Bloomberg via Getty Images / Getty Images)
“Commercial contacts in a number of [Federal Reserve] The districts had indicated that companies would try to go to consumers Higher contribution costs result from potential rates, “said the minutes.
Since the last Fed meeting, the president Donald Trump has extended its price plans to include 10% of prices on Chinese products and 25% of prices on steel and aluminum.
He also delayed the implementation of 25% of prices on imports from Mexico and Canada until next month, and reported plans for 25% or more prices on cars, semiconductors and products pharmaceuticals.
Inflation increases by 3% in January, warmer than expected
Prices are taxes on imported goods. Companies can adopt higher prices costs to consumers. (Photos Mike Blake / Reuters / Reuters)
FED political decision -makers also noted that central inflation does not slow down as much as it was planned in 2024, which associated with changes and potential trade policy rates, create the potential of higher inflation.
“The risks around the basic line for inflation have been considered to be upwards because central inflation had not diminished as much as provided in 2024 and because changes in trade policy could express more pressure on inflation that the staff had not supposed to “, the minutes said.
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Reuters contributed to this report.
