The Federal Reserve System (Fed) is concerned that import tariffs and other economic plans of U.S. President Donald Trump may slow progress in bringing inflation back to the target level of 2%, according to the minutes of the January meeting of the Federal Open Market Committee (FOMC).
As a result, the Fed kept the federal funds rate in the range of 4.25-4.5% per annum, and this decision was made unanimously by all FOMC members. Analysts also did not expect a change in the rate.
Business representatives from across the country reported to Fed officials that they would attempt to pass on any increase in costs caused by the imposition of tariffs to consumers, the document states.
