December FOMC Meeting Minutes: Concerned about Trump's tariff policy causing inflation rebound, the Federal Reserve has slowed down the pace of interest rate cuts.

The US Federal Reserve released the minutes of its November FOMC meeting on Tuesday evening, expressing support for a "gradual" rate cut, but the pace of rate cuts may slow or even pause if inflation data falls short of expectations. (Summary: Fed Governor: Fed will be more cautious to cut interest rates, U.S. stock valuations are on the high side and easy to pull back sharply) (Background supplement: Ball hawk "no rush to cut interest rates" BTCprice drops $86,600, U.S. stocks all inverted, October PPI shows inflation is still sticky) The Federal Open Market Committee (FOMC) of the US Federal Reserve decided at its December meeting to cut interest rates by another yard, reducing the BenchmarkIntrerest Rate to 4.24%- 4.50% range, which has been cut by 1 percentage point since the start of the rate cut cycle in September. On the evening of yesterday (8), the Federal Reserve officially released the minutes of the December FOMC meeting, and what caused a high degree of concern was that officials expressed concern about inflation and Trump's policies that could increase inflation and economic uncertainty, and clearly stated that they would "slow down the pace of interest rate cuts". CNBC reported that although the minutes of the meeting did not explicitly name Trump, it mentioned at least four times the impact that changes in immigration and trade (tariff) policies could have on the U.S. economy. The minutes showed: Officials expect inflation to continue at 2%, though they note that recent higher-than-expected inflation data, as well as the impact of potential changes in trade and immigration policies, suggest that the process may take longer than previously expected and is not expected until 2027. Some people observe that the deflation process may be temporarily stalled, or note the risk of this. Almost all participants believe that the upside risks to the inflation outlook have increased. Discussing the outlook for monetary policy, participants said: "The Committee is at or close to slowing down the pace of policy easing appropriately." Fed officials agree to cautious rate cuts In addition, FOMC officials agreed that "the policy Intrerest Rate is significantly closer to neutral now than it was when the Commission began easing policy in September." Most participants expressed the view that the Committee could be cautious in considering adjustments to the monetary policy stance as the current monetary policy stance is significantly less restrictive. If inflation continues to rise, the committee may maintain the policy Intrerest rate at a restrictive level or loosen it more slowly; Policy easing could be faster if labor market conditions deteriorate, economic activity stalls, or inflation rises. At a press conference after the Intrerest Rate decision-making meeting on December 18, Fed Chairman Jerome Powell also sent a hawkish signal of a slowdown in interest rate cuts: Drive on a foggy night or walk into a dark room full of furniture, all you have to do is slow down. After the minutes were released, David Russell, head of global market strategy at TradeStation, commented to Reuters: "In the coming weeks, everyone is on the sidelines. The Fed no longer relies on data. It's now dependent on Trump." Fed sounding board: FOMC officials tend to keep Intrerest Rate unchanged this month It is worth noting that while the vast majority of FOMC officials support a 1-yard rate cut in December, the latest dot plot in December shows officials halving the outlook for rate cuts in 2025 from the original estimate of 4 at the September meeting to 2 rate cuts of 1 yard. There will be two more rate cuts in 2026, and possibly another 1 or 2 more after that, eventually bringing the long-term federal funds Intrerest Rate to 3%. Fed's December Intrerest Rate dot plot | Source: Bloomberg At present, the market is more pessimistic, expecting only 1~2 more rate cuts this year. According to CME Group's FedWatch indicator, traders believe there is a more than 95% chance that the FOMC will stand still at the January 28-29 meeting. Wall Street Journal reporter Nick Timiraos, known as the Fed's mouthpiece, also said today that the FOMC minutes further indicate that officials are generally willing to maintain Intrerest Rate stability at the meeting at the end of this month. Officials believe that based on the current outlook for economic activity, the Fed is likely to continue to cut interest rates at a slower pace than in recent months. Source: CME Group's FedWatch tool Related reports Fed microphone: Fed ultra-low Intrerest Rate era ends, Trump grasps the key to 2025 rate cuts Fed November FOMC meeting: the pace of rate cuts may slow or even pause, neutral Intrerest Rate outlook Bloomberg opens Fed: "dot plot" is the biggest source of chaos in the market, it is recommended to cancel to reduce economic impact The dollar rose to a nearly two-year high! Analyst: Fed interest rate cut outlook and Trump policy are bad for BTC [December FOMC meeting minutes: worried about Trump's tariff policy caused inflation rebound, the Fed set the tone to slow down the pace of interest rate cuts] This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".