By Christopher Lugerber
WASHINGTON (AP) – At a meeting last month, Federal Reserve officials pointed to an increased risk that inflation could worsen.
Federal Reserve officials said that the January 28-29 meeting, released Wednesday, were the major deportation of tariffs and mass immigrants proposed by President Donald Trump, as well as strong consumer spending. said it is a potential factor that could boost inflation this year.
“They would want to see further advances in inflation before cutting further,” said 19 Fed officials who participated in the interest decision. They reduced the Fed’s key rate to 4.3% after cutting it from a two-year height of 5.3% late last year. The Fed’s suspension is less likely to immediately reduce consumer borrowing costs, including mortgages, car loans, and credit cards.
However, last week, the government released data suggesting that inflation is actually getting worse, leading many economists to predict one this year (if there is, if there is, only one). The Labor Bureau said consumer prices rose 3% in January, up from a 3.5-year low of 2.4% in September last year. However, the Fed said inflation was close to 2.5%. Follow closely to another inflation measurement that indicates.
The minutes also cited the “highly uncertainty” surrounding the economy, so it was appropriate for the Fed to “take a careful approach” when considering further changes to key interest rates.
All Fed policymakers support changing the key rates for last month, the minutes said. The unanimity comes after signs of growing discrepancy in recent months between authorities who support further interest rate cuts and those who are more concerned about stubborn inflation.
Original issue: February 19, 2025, 2:18pm EST
