Norbolsa | The policy proposals of the new Trump administration were causing inflationary concerns within the US monetary authority, as reflected in the minutes of its last meeting in January.
In these, the attendees reflected the main risk of the scenario as the possibility of inflation picking up and not the concern that the labour market would lose strength, expressly citing the potential effects of trade and immigration policies, the potential risk that geopolitical developments would generate disruptions in supply chains and the possibility that private consumption would be stronger than expected.
However, they remain confident that inflation will moderate in the coming months despite recognising that the risk of rising prices is predominant, and indicated that many companies in various delegations were open to raising prices to reflect the increase in tariffs. Thus, these minutes reinforce expectations that the Fed will advocate caution when making decisions on interest rates.
