Fed policy makers expect higher rates as Trump’s tax cuts boost growth
Washington — Almost all Federal Reserve policy makers thought the economy could grow more quickly because of fiscal stimulus under the Trump administration and many were eyeing faster interest rate increases, minutes from the central bank’s December meeting showed. The minutes, released on Wednesday, showed how broadly views within the Fed are shifting in response to US president-elect Donald Trump’s promises of tax cuts, infrastructure spending and deregulation. Policy makers were clear that the outlook for those policies remained uncertain, but they could, if implemented, stoke higher inflation which would lead the central bank to raise borrowing costs more aggressively. "About half of the participants incorporated an assumption of more expansionary fiscal policy in their forecasts," according to the minutes from the December 13-14 meeting, referring to the 17 policy makers who participated. "Almost all also indicated that the upside risks to their forecasts for economic growth ha...
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