Fed officials are worried about the inflation impacts from Trump's policies, minutes show

Main Idea: Federal Reserve officials said they are growing more cautious about rate cuts as they watch inflation and the possible effects of President Donald Trump’s planned trade and immigration policies.

Key Points:

• The Fed said more inflation risk has appeared, partly because of stronger-than-expected price data and uncertainty over future policy changes.
• Minutes from the December meeting showed officials expect to slow the pace of interest rate cuts.
• The central bank cut rates by a quarter point in December, but now expects fewer cuts in 2025 than it had earlier forecast.
• Chair Jerome Powell said the Fed is moving carefully because inflation is still above its 2% goal and the outlook remains unclear.