On February 20th, COINOTAG reported that the Federal Reserve’s latest meeting minutes reveal increasing apprehensions about escalating inflation. This situation has arisen in the wake of preliminary policy suggestions from President Trump shortly after his inauguration. The policymakers highlighted “upside risks to the inflation outlook,” overshadowing concerns related to the labor market. Notable risks identified include shifts in trade and immigration policies, potential geopolitical shocks affecting supply chains, and unexpectedly robust household spending.
Despite a prevailing confidence that price pressures would stabilize, the minutes also reflected worries that several influential factors might hinder the anti-inflation trajectory. Some contacts from the Fed indicated that businesses could attempt to transfer increased input costs to consumers, particularly in response to potential tariffs. Additionally, an uptick in certain measures of inflation expectations has emerged as a key area of concern for Federal Reserve officials, signaling the need for ongoing vigilance in monetary policy.