Trump's Tariffs Remain Fed's Biggest Risks To Rate Cuts, Minutes Say

Benzinga

The Fed warned Trump’s tariffs are delaying progress toward its 2% inflation goal, possibly until 2027. Despite a 25-bp rate cut, policymakers say higher import costs threaten price stability and complicate future rate decisions.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Federal Reserve warned that Trump's tariffs are slowing progress toward its 2% inflation goal

00:07and could delay price stability until 2027, according to Benzinga.

00:11Fed proceeded with a 25 basis point rate cut in its September meeting,

00:14but acknowledged that tariffs have become a key obstacle to lowering inflation.

00:18Many businesses are planning to pass higher costs to consumers.

00:21Futures markets still expect two more rate cuts by the end of 2025,

00:24with some analysts suggesting they may better predict future trends if inflation falls in 2026.

00:30Policymakers remain cautious, warning that cutting too soon could reignite inflation,

00:34while keeping rates high risks deeper job losses and a slowdown.

00:38For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended