Concerns about inflation's effects from Trump's policies expressed by Fed officials, according to minutes.

• At their December meeting, Federal Reserve officials voiced worry about inflation and how President-elect Donald Trump's policies might affect efforts to decrease it.
• Due to uncertainty, the policymakers decided to move more slowly on interest rate cuts, as shown in the minutes of the meeting on Wednesday.
• The meeting discussed the potential effects of immigration and trade policy changes on the U.S. economy.

The Federal Reserve expressed concern about inflation and the potential impact of President-elect Donald Trump's policies at their December meeting. The minutes released Wednesday showed that the uncertainty caused by Trump's policies would require caution, and the Fed would be moving more slowly on interest rate cuts. The meeting summary mentioned the impact of changes in immigration and trade policy on the U.S. economy. Since Trump's election, he has signaled plans for aggressive, punitive tariffs on China, Mexico, and Canada, as well as other U.S. trading partners. He also intends to pursue more deregulation and mass deportations. However, the extent of what Trump's actions will be and how they will be directed creates ambiguity about what is ahead. Almost all participants judged that upside risks to the inflation outlook had increased, citing recent stronger-than-expected readings on inflation and the likely effects of potential changes in trade and immigration policy. The Fed cut a full point off the funds rate since September, and current market pricing is indicating just one or two more moves lower this year.

The Fed is likely to slow the pace of policy easing as inflation readings remain above the target, consumer spending is solid, and the labor market is stable. Officials stressed that future policy moves will depend on how the data unfolds and are not on a set schedule. The Fed's preferred gauge showed core inflation running at 2.4% rate in November, and 2.8% when including food and energy prices, compared with the prior year. The Fed target's inflation at 2%. In documents handed out at the meeting, most officials indicated that while they see inflation gravitating down to 2%, they don't forecast that happening until 2027 and expect that near-term risks are to the upside. At his news conference following the Dec. 18 rate decision, Chair Jerome Powell likened the situation to "driving on a foggy night or walking into a dark room full of furniture. You just slow down." That statement reflected that mindset of meeting participants, many of whom "observed that the current high degree of uncertainty made it appropriate for the Committee to take a gradual approach as it moved toward a neutral policy stance." The "dot plot" of individual members' expectations showed