Minutes from the Federal Reserve's December meeting reveal policymakers plan to adopt a more cautious approach to interest rate cuts due to uncertainty surrounding President-elect Donald Trump's economic policies. Fed officials expressed concerns that Trump's proposed tariffs and mass deportations could impact inflation, potentially delaying the Fed's target of 2% inflation. As a result, bets on the Fed holding rates steady at its next few meetings have increased.
Investing.com - Minutes from the Fed eral Reserve's latest meeting indicated that policymakers will adopt a slower pace of interest rate cuts ahead, according to analysts at Goldman Sachs.
Participants flagged"continued progress on inflation but stress upside risks," the Goldman Sachs analysts said. Markets are now looking ahead to the monthly US employment report on Friday, which could have further sway over the thinking of Fed staff. On Wednesday, private payrolls data for December slowed, although the weekly number of Americans filing for jobless benefits fell.
FED INTEREST RATES INFLATION TRUMP POLICIES ECONOMIC OUTLOOK
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