Fed warns of prevailing 'uncertainty' from Trump policies

Inflation risks ‘skewed on the upside’

Sorin Dojan
clock • 2 min read

Federal Reserve officials have said there is “considerable uncertainty” surrounding US President Donald Trump’s trade policy and warned that the declining perception of “safe-haven status” for US assets could have “long-lasting implications” on the economy.

According to the minutes of their May meeting released on Wednesday (28 May), central bank officials noted "the large amount of uncertainty surrounding trade policy and other economic policies" and argued that "vulnerabilities to the financial system…warranted monitoring". "Significant uncertainties also surrounded changes in fiscal, regulatory, and immigration policies and their economic effects. Taken together, participants saw the uncertainty about their economic outlooks as unusually elevated," the minutes read. Uncertainty from Trump's trade war pulls a break on May's Fed rate cu...

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