Fed fears Trump policies could hinder effort to cut US inflation, minutes show

Officials concerned by possible impact of ‘potential changes in trade and immigration policy’ from incoming president

Federal Reserve officials see a rising risk that inflation may remain sticky in the US as policymakers begin wrestling with the impact of policies from the incoming Trump administration, according to the minutes of the US central bank’s latest meeting.

While officials believe inflation will continue to move toward 2%, the Fed’s target rate for inflation, they noted that “recent higher-than-expected readings on inflation, and the effects of potential changes in trade and immigration policy, suggested that the process could take longer than previously anticipated”.

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