Federal Reserve minutes revealed concerns about persistent inflation and the potential impact of President-elect Donald Trump's policies, spooking investors. The minutes showed that officials saw upside risks to inflation and cited strong recent readings.
Jerome Powell, chairman of the U.S. Federal Reserve , at a news conference after a Federal Open Market Committee meeting in Washington, D.C., on Dec. 18, 2024.The report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe.
Federal Reserve officials expressed concern that inflation would stubbornly remain above the central bank's 2% target, and over the possible impact of U.S. President-elect Donald Trump's policies. Consequently, officials would be Asian currencies, such as the Chinese yuan, the Japanese yen and the Korean won have fallen against the U.S. dollar since Trump won the presidential election in November. That poses a: A weaker currency would boost exports but might increase imported inflation, complicating the ability of banks to steer domestic economic policy.from the National Bureau of Statistics showed Thursday. On a monthly basis, China's CPI came in flat, compared with November's 0.6% decline. China's persistently low consumer inflation indicates that China is struggling with weak domestic demand, Look out for this Taiwanese chip supplier, Bernstein says At CES, Nvidia announced a desktop supercomputer aimed at AI researchers and data scientists. The computer will feature Nvidia's Grace Blackwell Superchip, which Nvidia will produce in partnership with aOn paper, minutes for the Fed's December meeting spelled bad news for investors. Officials were worried about inflation and the impact of Trump's stated policies (though Trump was not explicitly named). 'Almost all participants judged that upside risks to the inflation outlook had increased,' the minutes said. 'Participants cited recent stronger-than-expected readings on inflation and the likely effects of potential changes in trade and immigration policy.'Upside risks to inflation, problematic policies for the economy and fewer-than-expected rate cuts: That's a potent and bitter brew for investors to swallow. Yield on the 10-year Treasury note hit 4.730% during intraday trading, the highest since April.inflation's stubbornness recently had been driven primarily by 'imputed' prices such as housing services, while 'observed' prices for other goods and services show disinflation. Waller added that if economic conditions go according to his view, he would 'support continuing to cut our policy rate in 2025.' What's not priced in as much is the U.S. jobs report for December, due on Friday. That could be the next catalyst for markets.Get the CNBC Daily Open report in your inbox every morning and keep up to date with the markets wherever you are
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