Fed Officials Cautious on Inflation Amid Trump Era Policy Shifts

Federal Reserve officials are wary of persistent inflation as they anticipate the effects of Trump's policies. Despite recent rate cuts, they consider slower future easing amid uncertainties. Changes in trade and immigration policies could impact growth and unemployment, complicating the economic outlook.

Federal Reserve officials have expressed concerns over persistent inflation, as documented in the minutes from the U.S. central bank's December meeting. Despite a general optimism about inflation moving towards the Fed's 2% target, the central bank faces uncertainty due to potential policy shifts from the incoming Trump administration.

The deliberations revealed a cautious approach to rate cuts, with some members arguing against further reductions. The Fed had already cut its benchmark rate by a full percentage point, and officials hinted at slowing the pace of policy easing in the future.

With low unemployment and strong growth, policymakers grapple with how Trump's trade and immigration policies might affect the economy. While the economic outlook is clouded by these potential challenges, officials will continue to assess the impacts over time.

(With inputs from agencies.)