Trump’s Proposed Tariffs May Slow Disinflation and Increase Costs, Fed Minutes Reveal

About Trump’s Proposed Tariffs May Slow Disinflation and Increase Costs, Fed Minutes Reveal

American consumers may face price hikes if former President Donald Trump enacts proposed tariffs, according to the Federal Reserve's January meeting minutes. The Fed cautioned that such tariffs could impede the disinflation process, with businesses potentially passing higher costs to consumers. Additionally, concerns over trade, immigration, and regulatory policies create uncertainty in assessing inflation trends. While the Fed has kept interest rates unchanged, analysts anticipate at most one rate cut in 2025.