Trump agenda, risk for the fight against inflation

Washington. Federal Reserve (Fed) officials agreed that inflation is likely to continue slowing this year, but they also saw a risk that price pressures will remain due to the impact of the policies expected from the future president’s government. Donald Trump, the minutes of the last meeting of the US central bank showed yesterday.

Participants expected inflation to continue moving toward 2 percent, but noted that recent higher-than-expected inflation readings and the effects of possible changes in trade and immigration policy suggested the process could take longer than expected. what was plannedit is said in the minutes.

Several observed that the disinflationary process could have temporarily stalled or pointed out the risk that this might be the case.added the minutes of the December 17 and 18 meeting in which the Fed lowered its interest rate by a quarter of a percentage point.

Given future uncertainty and the full percentage point of reductions already made to the benchmark interest rate in 2024, participants indicated that the committee was at or near the point where it would be appropriate to slow the pace of monetary policy easingaccording to the minutes.

For her part, US Treasury Secretary Janet Yellen told CNBC that the Joe Biden administration’s stimulus spending to keep the economy going during the Covid-19 pandemic may have contributed to inflation, as well such as problems in supply chains.