Wed, 19 Feb 2025

Wed, 19 Feb 2025 US Fed warns Trump's tariffs may increase prices

The minutes from the last meeting of the e Fed's rate setting committee reveal inflation concerns.

* US central bank warns that proposed tariffs by President Trump may lead to higher prices for American shoppers.
* Fed members believe Trump's policies could "hinder the disinflation process".
* Business contacts in various districts expect firms to pass on increased costs to consumers due to potential tariffs.
* Elevated uncertainty regarding trade, immigration, fiscal, and regulatory policies is also a concern.
* The Federal Reserve left interest rates unchanged in January, despite criticism from Trump for not cutting rates sooner.
* Analysts predict the Fed will likely only cut benchmark interest rate once in 2025 or possibly not at all.
* Trump's campaign promises included lower interest rates, which would provide relief to borrowers, but may put pressure on the Fed's independence.
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