---
title: FOMC Minutes Show 'Almost All' Fed Members See Higher Inflation Risks, Cite Trump Policies
description: "👉 RATE POLICY:\n— A 25bps rate cut was broadly supported, with the majority favoring a cautious approach to further easing.\n— Many participants suggested that a variety of factors underlined the need for a careful approach to monetary policy decisions over coming\nquarters\n— Some participants noted it might be prudent to pause rate cuts if inflation readings remain above target or economic momentum persists.\n— A few officials highlighted potential scenarios to accelerate cuts if inflation trends lower or labor market softens more than expected.\n— Many emphasized the importance of carefully assessing the neutral rate and moving gradually to avoid policy missteps.\n👉RISK OUTLOOK:\n— Inflation risks remain balanced, though higher-than-expected recent readings warrant close monitoring.\n— Labor market risks were deemed manageable, with no rapid deterioration expected.\n👉ECONOMIC CONTEXT:\n— Inflation progress has slowed but remains on a downward path; core PCE inflation was noted at 2.8% in October.\n— Labor market conditions have eased slightly, but unemployment remains low at 4.2%.\n— Participants expect solid GDP growth to continue, though some noted financial strains for lower-income households.\n👉BALANCE SHEET AND TECHNICAL ADJUSTMENTS:\n— Continued reduction in Treasury and mortgage-backed securities reaffirmed, with caps set at $25B and $35B per month, respectively.\n— Discussed adjusting the overnight reverse repo (ON RRP) rate to align with the bottom of the federal funds rate range.\n👉 ADDITIONAL NOTES:\n— Fed emphasizes data-dependent decision-making, balancing risks to inflation and employment.\n— Gradual easing remains the likely path, with flexibility to adapt if economic or inflation conditions shift.\n- source: Wall St Engine @wallstengine"
---

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# [FOMC Minutes Show 'Almost All' Fed Members See Higher Inflation Risks, Cite Trump Policies](https://blog.syzgroup.com/syz-the-moment/fomc-minutes-show-almost-all-fed-members-see-higher-inflation-risks-cite-trump-policies)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jan 9, 2025, 8:08:53 AM

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