Minutes from the most recent Federal Open Market Committee meeting show that its members want to see further progress on lowering inflation before again trimming rates, with some members concerned that White House policies on trade and immigration could complicate inflation forecasts.
The FOMC last met in January, when its members voted to maintain the target range for the federal funds at 4.25%-4.5%. According to minutes from the meeting released today, committee members wanted to see more progress on inflation for lowering the target range, provided the economy remains at near maximum employment.
Inflation risks include the possible effects of potential changes in trade and immigration policy, the potential for geopolitical developments to disrupt supply chains, or stronger-than-expected household spending. At least two participants said that, in coming months, “it might be especially difficult to distinguish between relatively persistent changes in inflation and more temporary changes that might be associated with the introduction of new government policies.”
