US Bureau of Labor Statistics unemployment report for June 2025

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.