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Fed officials are worried about the inflation impacts from Trump’s policies, minutes show

  • Goldman Sachs estimates a nearly 30% probability of market corrections due to rising inflation pressures and political uncertainty ahead of Donald Trump's second presidential term, starting on Jan. 20, 2025.
  • The Federal Reserve's December meeting minutes show policymakers are divided on future rate adjustments due to concerns about inflation and economic uncertainty under the incoming administration.
  • The Fed projects headline personal consumption expenditure inflation for 2025 will reach 2.5%, an increase from a prior estimate of 2.1%, amid expectations of slower rate cuts next year.
  • Markets reacted mutedly to the Fed minutes, with the U.S. Dollar index holding steady and equities experiencing a modest relief rally, despite ongoing inflation concerns.
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Associated Press News broke the news in United States on Wednesday, January 8, 2025.
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