Federal Reserve Officials Are Concerned About Inflation Effects of Trump Policies: Meeting Minutes

Minutes from December’s policy meeting show that Federal Reserve officials expect inflation to continue moving toward the central bank’s 2 percent target. Still, officials believe the process could be slower amid upcoming changes to immigration and trade policies, the minutes show. While policymakers did not reference President-elect Donald Trump by name, the meeting summary highlights concerns surrounding the uncertainty of the incoming administration’s policies. The Federal Open Market Committee (FOMC) meeting minutes, released on Jan. 8, contain various allusions to the potential economic impacts of adjustments to trade and immigration policies. Meeting participants expect next year’s inflation path to emulate last year’s trend. Based on trade policy assumptions, inflation is forecast to reach the institution’s 2 percent target by 2027....