Federal Reserve Flags Inflation Risks Linked to Trump Policies

Fed officials express concerns over potential inflationary effects of tariffs, immigration policies, and economic uncertainty under Trump's administration.

Federal Reserve officials have highlighted risks of persistent inflation, citing President Trump's proposed tariffs and immigration policies as potential contributors to rising costs.
The Federal Open Market Committee (FOMC) kept interest rates steady at 4.25%-4.50% in January, with no immediate plans for further rate cuts as inflation remains above the 2% target.
Businesses in several Fed districts indicated plans to pass higher input costs from tariffs onto consumers, potentially driving up prices further.
Uncertainty surrounding Trump's broad-based trade and immigration measures has created apprehension among businesses and complicated the Fed's inflation outlook.
While progress has been made in reducing inflation since its 2022 peak, recent data shows inflationary pressures persisting, with January's Consumer Price Index (CPI) rising to 3% year-over-year.