Fox Business Correspondent Gery Willis reports on the impact of tariffs on homebuilders and breaks the latest housing data.
federal Reserve Policy makers noted the potential impact of trade policy change such as high tariffs contribute to concerns about high inflation in minutes from their most recent meeting.
The minutes released on Wednesday from the Federal Open Market Committee (FOMC) meeting in January revealed that policy makers generally pointed to reverse risks. Inflation outlook,
“In particular, participants cited potential impacts of potential changes in trade and immigration policy, the possibility of geopolitical development to disrupt supply chains, or to strengthen strong-to-intake domestic expenses,” Fed minutes said.
Fed said that while it still reduces inflation towards the central bank’s 2% target rate, “other factors were quoted as the ability to obstruct the dissolution process, including high cost from potential tariffs.
Amidst the concerns of inflation, tariffs may have factors in the rate-cut schemes, experts say
Fed Chair Jerome Powell and Central Bank Policy makers kept the interest rates stable in their most recent meeting. (Al Drago / Bloomberg Getty Image / Getty Image)
“Professional contacts in several (Federal Reserve) districts indicated that firms would have to try Pass consumers High input costs arising from potential tariffs, “minutes said.
Since the most recent meeting of Fed, President Donald Trump 10% tariffs on Chinese goods and 25% tariffs on steel and aluminum have been comprehended its tariff plans.
They have delayed the implementation of 25% tariffs on imports from Mexico and Canada by at least next month, and have indicated plans for 25% or high tariffs on automobiles, semiconductors and pharmaceutical products.
Inflation increases by 3% in January, more hot than expected
Tariffs are tax on imported goods. Businesses can pass the cost from high tariffs on consumers. (Mike Black / Reuters / Reuters Photos)
Fed policy makers also mentioned that the core inflation was not as slow in 2024, which was coupled with potential business policy changes and tariffs, produces capacity for this. High inflation,
“The risks around the base line for inflation were seen as reverse as the core inflation did not decrease in 2024 and because the change in business policy could increase more pressure on inflation,” the employees accepted Was, “Mines said. Said.
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Reuters contributed to this report.
