The federal reserve held stable interest rates at its meeting in January. The minutes of this meeting, Released on Wednesdayrevealed that most FED officials have supported detention policy at restrictive levels.
“Many participants noted that the Committee could hold the policy rate at a restrictive level if the economy remained strong and that inflation remained high, while many pointed out that policy could be attenuated if the conditions of the Work has deteriorated, economic activity has been weakened or inflation has returned to 2% faster than expected, “the minutes read.
Participants observed that the committee was “well positioned” to take the time to assess “the evolution of the prospects of economic activity” and that new progress on inflation was necessary before adjusting the rates.
On the inflation front, “participants generally highlighted the rising risks of inflation prospects. Household expenditure.”
Last week, Trump announced that global prices of 25% on steel and aluminum imports, to take effect on March 12. He then ordered that federal agencies study the reciprocal prices on business partners.
More recently, Trump said to expect additional tasks on cars, fleas and pharmaceutical products. A flat rate “in the 25%” district would apply to all foreign car manufacturers and would start on April 2.
25% prices on Mexico and Canada should arrive next month, while 10% of China duties have already been implemented.
In addition to political uncertainties, the minutes have also highlighted recent economic unknowns, in particular “the values of the rate of neutral policy in the longer term, the potential growth rate of the economy and the maximum level of employment” . These uncertainties “would remain an important factor affecting their decision -making”.
