Fed minutes: potential impact of Trump policies raises inflation concerns

Odaily Planet - Trump's initial policy proposals have raised concerns about rising inflation at the Federal Reserve, Fed policymakers said at a meeting held about a week after Trump's inauguration on 20 January. Participants ‘generally pointed to upside risks to the inflation outlook’ rather than risks to the job market, according to published minutes of the meeting. ‘In particular, participants cited potential changes in trade and immigration policies, the possibility of geopolitical developments disrupting supply chains, or the possible impact of stronger-than-expected household spending.’ The minutes said that while participants remained confident that price pressures would continue to ease, ‘other factors were cited as having the potential to impede the counter-inflationary process,’ including the fact that ‘some (Federal Reserve) regional business contacts indicated that firms would attempt to pass on the higher input costs from potential tariffs to the consumers.’ Participants also noted that some measures of inflation expectations, a key concern for the Fed, ‘have risen recently.’ (GOLDEN TEN)