Most Fed Officials Were Worried About Higher Inflation, but Not Enough to Put Rate Hikes On the Table, Minutes of December Meeting Show

Almost all officials saw chance that inflation would stay higher than desired, in part due to Trump policy plans

by Greg Robb
Market Watch

Most Federal Reserve officials were worried about the risks of higher inflation — but not enough to talk about potential rate hikes, according to minutes of the Fed’s December meeting released Wednesday.

“Almost all” Fed officials judged that the upside risks to inflation had increased, the minutes said.

This was due, in part, to potential changes in trade and immigration policy under consideration by the incoming Trump administration.

All of this led to a careful and cautious approach — but not hikes.

If inflation remained elevated, many Fed officials said the central bank could hold the policy rate steady or ease more slowly. There was no mention of rate hikes.

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