Asian Markets Dip as Fed Warns of Inflation Risks from Trump's Policies

Federal Reserve officials express concerns over inflationary pressures from trade and immigration policies, while global markets react to new tariff threats.

Asian stock markets fell, with Hong Kong's Hang Seng Index dropping 2.1% and Tokyo's Nikkei 225 down 1.5%, following Federal Reserve warnings about potential inflation risks linked to U.S. trade and immigration policies.
The Federal Reserve's January meeting minutes revealed officials' concerns about inflationary pressures from President Trump's tariffs and immigration measures, with the central bank signaling no immediate plans for further rate cuts.
President Trump announced new 25% tariffs targeting autos, chips, and pharmaceuticals, set to take effect in early April, adding to existing tariffs on steel, aluminum, and goods from China, Mexico, and Canada.
Despite Wall Street gains, with the S&P 500 reaching a record high, global markets remain cautious, as European stocks also retreated over tariff concerns and geopolitical uncertainty.
Trump's recent comments on Ukrainian President Volodymyr Zelensky, calling him a 'dictator,' have raised diplomatic tensions, complicating U.S. support for Ukraine amid ongoing conflict with Russia.