Fed Officials Express Inflation Concerns Over Trump Policies

The Federal Reserve raised concerns about the inflationary impacts of President Trump's trade and immigration policies during a recent meeting, suggesting that proposed tariffs could lead to higher consumer prices. Economists predict that the largest mass deportation in U.S. history could further exacerbate inflationary pressures alongside tariffs. The Fed decided to maintain interest rates between 4.25% and 4.50%, reflecting uncertainty in the economic outlook, particularly due to trade policies and potential geopolitical developments. Market analysts anticipate one to two interest rate cuts this year, but ongoing inflation and economic uncertainties could complicate this outlook. Experts warn that tariffs may slow domestic investment and economic activity, adding further unpredictability to future Federal Reserve actions. Overall, Fed participants remain cautious, focusing on achieving a stable inflation rate of around 2%.