At a meeting last month, the federal monetary policy formulations were almost unanimously in saying that the American economy faced higher risk of inflation and slower growth, as some authorities indicated that “difficult compensation” may be before the US Central Bank, according to the minutes of the meeting.
The meeting was held on 18 and 19 in the wake of the initial tariff plans for the Trump government, which increased uncertainty about economic perspectives and pushes the participants to prefer a “cautious approach” and may choose to maintain higher interest rates for a longer period if inflation continues, or reduce economy rates if the weak economy needs more urgent attention.
“The participants have increased that the uncertainty about economic perspectives has increased, as almost all the participants saw the risks to inflation, and the risk of employment was tilted and the risks of employment as they are,” according to the minutes issued on Wednesday (9).
The minutes said that some participants in the meeting “noticed (…) that the Federal Committee (the federal market) may face difficult compensation if inflation is more stable with poor growth and employment.”
The 19 -monetary policy formulations that gathered before President Donald Trump revealed on April 2, more aggressive and comprehensive import taxes than the advertiser before the March meeting.
Even from a more limited point of view, the Federal Reserve Bank authorities in this meeting reduced economic growth predictions, increased their view of inflation to 2025 and reduced three to two rates of 0.25 percentage points expected for this year.
In the same way, the FBI authorities have indicated an increase in the uncertainty over Trump’s political plans and its potential impact on the economy.
In the middle of March, before the decrease in stock prices, followed by the latest Trump identification ads, the federal reserve authorities were already interested in the dangers of “sudden repetition”.
“Some participants have warned that sudden repetition of risk in financial markets could exacerbate the effects of any negative shock to the economy,” the minutes say.
The measures announced by Trump since the last meeting of the expected Federal Reserve, and US Central Bank officials, including the President of the Federal Reserve, Jerome Powell, said that the consequences are likely to be higher.
In an early social network publication on Wednesday afternoon, Trump said he was stopping many new taxes for 90 days, although Chinese imports are not taxes.
Global stock markets decreased dramatically before Trump’s recent announcement, and the American Treasury titles increased.