The Federal Reserve kept the interest rates stable during her meeting in January. From the minutes of that meeting, released on Wednesday, most of the Fed officials supported the detention policy at restrictive levels.
“Many participants noted that the committee could keep the policy percentage on a restrictive level if the economy remained strong and inflation remained, while various notes that the policy could be relaxed if the labor market conditions deteriorate, economic activity faltered or inflation was reduced To 2 percent faster than expected, “read the minutes.
Participants noted that the committee was “well positioned” to take the time to assess the “evolving prospects for economic activity” and that further progress on inflation was needed before the rates were adjusted.
At the front of inflation, the participants generally pointed to upward risks for the inflation views. In particular, participants mentioned the possible effects of potential changes in trade and immigration policy, the potential for geopolitical developments to disturb supply chains, or stronger than expected household expenses. “
Last week, Trump announced the worldwide rates of 25% of steel and aluminum imports to come into effect on March 12. He later ordered that federal agencies study mutual rates for trading partners.
More recently, Trump said to expect extra tasks on cars, chips and medicines. A flat rate “near 25%” would apply to all foreign car manufacturers and already start 2 April.
Rates of 25% on Mexico and Canada will come next month, while 10% tasks have already been implemented on China.
Together with policy security, the minutes also emphasized recent economic strangers, including “the values of the longer neutral policy percentage, the potential growth rate of the economy and the level of maximum employment.” These uncertainties “would remain an important factor that influences their decision -making.”
