Fox Business Correspondent Gerri Willis reports on the impact of tariffs on home builders and categorizes the latest housing data.
Federal Reserve policymakers have noted the potential impact of changes in trade policy, such as higher tariffs, which contribute to concerns about high inflation in minutes from the latest conference.
Minutes released Wednesday from a January meeting of the Federal Open Market Committee (FOMC) showed policymakers “pointing upside down risks in the outlook for inflation in general.”
“In particular, participants cited the possible impact of potential changes in trade and immigration policies, geopolitical developments that disrupt supply chains, or the possibility of stronger household expenditure than expected,” the Fed said. The minutes stated.
The Fed considers inflation to be declining towards a central bank’s 2% target rate, including higher costs due to potential tariffs, but “other factors could hinder the layoff process.” “It was quoted as having one.”
Tariffs could take into account the Fed’s rate cut plan amid inflation concerns, experts say
Fed Chairman Jerome Powell and central bank policymakers stabilized interest rates at their latest meeting. (Al Drago/Bloomberg via Getty Images)
“Many (Fed) district business contacts showed that businesses were trying to hand over higher input costs to consumers resulting from potential tariffs,” the minutes stated.
Since the Fed’s latest meeting, President Donald Trump has expanded his tariff plan to include 10% tariffs on Chinese goods and 25% tariffs on steel and aluminum.
He also delayed the implementation of 25% tariffs on imports from Mexico and Canada until at least next month, signaling plans for tariffs on automobiles, semiconductors and drugs over 25%.
Inflation rose 3% in January, hotter than expected
Customs duties are taxes on imported goods. Companies can pass costs to consumers from higher tariffs. (Mike Blake/Reuters/Reuters Photos)
Fed policymakers also said that, coupled with potential trade policy changes and tariffs, core inflation did not slow as expected in 2024.
“The risk around the baseline of inflation is skewed upwards as changes in trade policy could put pressure on higher inflation than staff expected as core inflation was not expected in 2024. He was considered to be. He said.
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Reuters contributed to this report.
