Fed minutes reveal policymakers' concerns about Trump’s policies

The Federal Reserve’s minutes, released on Feb. 19, showed policymakers' concerns about the potential impact of the new administration’s tariffs on inflation and the effects of tax cuts and immigration policy.During the Federal Open Market Committee (FOMC) meeting held on Jan. 28–29, policymakers unanimously decided to keep the interest rate within a range of 4.25% to 4.5%, following three consecutive rate cuts totaling a full percentage point in 2024.

Several participants cited factors hindering progress toward the 2% inflation target, including potential changes in trade and immigration policy, as well as strong consumer demand.

Members agreed that recent indicators suggest that economic activity continued to expand significantly, with the unemployment rate remaining low in recent months and the labor market showing resilience.

The FOMC stated that it would continue to monitor incoming data’s impact on economic outlooks and remains prepared to adjust its policy stance if risks hindering its objectives emerge.