Minutes Fed show tariffs that cause more inflation problems

Federal Reserve Politicians have noted that the potential influence of shifts in trade policy, such as higher tariffs that contribute to high inflation in minutes from the last meeting.

The protocol released on Wednesday at the Federal Open Market Committee (FOMC) in January showed that politicians “usually indicate risks in Inflation forecast“

“In particular, the participants referred to the possible consequences of potential changes in trade and immigration policy, opportunities for geopolitical events, to break the supply chains, or more than the expected household costs,” the Fed said in minutes.

The Fed said, although it still sees that inflation decreases to 2% of the Central Bank target rate, “other factors were given as potential to interfere with the disinfectant process”, including higher costs arising from potential tariffs.

Experts can take into account plans to reduce Fed speed against inflation problems, experts say

Fed Chairman Jerome Powell and the Central Bank’s policy held interest rates in their last meeting. (Al Drago / Bloomberg via Getty Images / Getty Images)

“Business contacts in a number (federal reserve) areas noted that firms will try to try Hand to consumers Higher costs resulting from potential tariffs, ”the protocol said.

From the last meeting of the Fed President Donald Trump Expanded its tariff plans to include 10% tariffs for Chinese goods and 25% of tariffs for steel and aluminum.

He also detained the sale of 25% of mexico and Canada import tariffs at least next month, and signaled with plans for 25% or more tariffs on cars, semiconductors and pharmaceuticals.

Inflation increases by 3% in January, hotter than expected

Tariffs are taxes on imported goods. Enterprises can transfer costs from higher consumers tariffs. (Mike Blake / Reuters Photos)

Fed policies also noted that the main inflation was not slowed as much as it was forecast in 2024 Higher inflation.

“The risks around the starting level for inflation were considered as skewed up, as the main inflation did not decrease as expected in 2024, and because changes in trade policy could exert more pressure on inflation than employees were assumed,” protocols, “” protocol, protocols, “protocol, protocol,” protocol, The protocol, the “protocols that believe” protocols, “said.

Get the Fox Business on the go by clicking here

Reuters contributed to this report.