Minutes from the January Federal Reserve policy meeting suggested officials are concerned about the economic effects of President Donald Trump’s tariffs.
Monetary policymakers expressed concern about upside inflation risks, citing possible changes to immigration and trade policy.
According to the meeting summary, business contacts in the Fed’s regional districts “indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs.”
This, Fed officials say, could threaten the disinflation process and keep the annual inflation rate well above the central bank’s 2 percent target.
While much of the new administration’s trade agenda has yet to be enacted and appear in the economic data, the monetary authorities are weighing various outcomes and possible responses….