US Fed warned that prices may rise in Trump’s tariff
If US President Donald Trump proceeds with his proposed tariff, American shopkeepers may face higher prices, the US central bank has warned.
The minutes of the January meeting of the Federal Reserve released on Wednesday revealed that its committee members believe that Trump’s policies could “obstruct the dissolution process”.
“Professional contacts in several districts indicated that firm consumers would try to pass high input costs arising out of potential tariffs,” the minutes said.
The release of comments faces criticism from Fed Trump To not cut interest rates soon After leaving unchanged rates at the January meeting.
In the fed minutes it was also revealed that “the scope of business, immigration, fiscal and regulatory policies, high uncertainty about time and potential economic impacts”.
“Some participants commented that, in the ahead period, it may be especially difficult to differentiate between the relatively frequent changes and more temporary changes that may be associated with the introduction of new government policies,” the minutes said. .
Fed minutes also showed readiness to stabilize the rates between the inflation and economic policy uncertainty of the Central Bank.
The Central Bank left the main interest rate in the January 4.25% to 4.5% range at the January meeting, after the cut at the end of last year.
Fed’s chair Jerome Powell has earlier stated that the bank was not “in a hurry”, to make more cuts, gave significant uncertainty about where the economy can be led by
Analysts estimate that the fed will cut the benchmark interest rate only once in 2025, with a large possibility of cutting a rate.
Trump’s campaign promises included calls for low interest rates, which would provide relief to the borrowers.
It has argued whether he would respect the tradition of Fed freedom, which means to keep it away from the long -term health of the American economy and from politics.
Mr. Powell had earlier told reporters that he had “no contact” with Trump and focused on data in determining the bank rates.
But Powell faced how to handle a new order to cancel the diversity programs from the Fed White House – and why it was back from a global group of central banks, which at the risks of climate change Used to focus. Will face the bank to keep them above the political field.
