US Fed Officials Express Concerns Over Stalled Disinflation Efforts

New York: So, it turns out that some bigwigs at the Federal Reserve are feeling a bit uneasy. They think the fight against inflation has hit a snag recently. This came out in the minutes from their December meeting, which were shared on Wednesday.

They decided to cut interest rates by a quarter point, but it wasn’t a unanimous choice. One member, Cleveland Fed president Beth Hammack, wanted to keep things as they were. The Fed’s new rate sits between 4.25 and 4.50 percent, but there’s chatter that rates might stay higher for a while.

Inflation has crept up a bit, moving away from the Fed’s target of two percent. Meanwhile, the economy is still growing strong, and the job market is holding up, which makes it less urgent for the Fed to make quick cuts.

During the meeting, several officials voiced their worries that the disinflation process might have stalled. They also noted that risks to inflation are on the rise. There was some talk about how changes in trade and immigration policies from Donald Trump could affect the economy, but they didn’t mention him directly.

Trump’s plans include hefty tariffs and a crackdown on undocumented workers, which some economists think could push inflation higher. But Trump and his team believe these moves will actually help keep inflation down and boost growth.

As they discussed rates, a few members mentioned it might be tricky to tell if inflation changes are temporary or more lasting, especially with all the trade policy shifts happening. Before the minutes were released, traders were pretty sure the Fed would keep rates steady at their next meeting.