Official statement from the Federal Reserve following the March 2025 FOMC meeting

FOMC Minutes Support 25 Basis Point Rate Cut at December Meeting, Citing Concerns Over Trump's Policies

Jan 8, 2025, 07:01 PM

The Federal Open Market Committee (FOMC) minutes from the December 17-18 meeting, released today, indicate that a vast majority of participants supported a 25 basis point rate cut at the meeting. The minutes reveal that the Federal Reserve officials are at or near the point of slowing the pace of easing, with many suggesting a gradual move toward a more neutral policy stance if economic data aligns with expectations. Participants anticipated that inflation would continue moving toward the 2% target, but noted that potential trade and immigration policy changes under the incoming administration of President Donald Trump could slow this progress. The Fed's staff projected slightly lower GDP growth and a slightly higher unemployment rate than previously forecasted, incorporating placeholder assumptions about these potential policy shifts. Additionally, the minutes highlighted a careful approach to monetary policy in the coming quarters, with the majority of participants indicating that their judgment on the December decision was finely balanced.