WASHINGTON (Reuters) – U.S. Federal Reserve (Fed) officials agreed in December that inflation was likely to continue to fall in 2025, while noting the risk of increased price pressures that could result from measures announced by the President-elect Donald Trump, shows the minutes of the institution’s last meeting.

During the December 17-18 monetary policy meeting, participants said they “expect inflation to continue moving closer to the 2% target, although they noted that recent data inflation rates higher than expected, as well as the effects of possible changes in trade and immigration policies, suggest that this process could take longer than previously anticipated.

Several Fed officials noted that “the disinflationary process could have temporarily stagnated or risks doing so”, it is added in the “minutes” of the meeting of the American central bank, published Wednesday.

As expected, the Fed lowered interest rates by 25 basis points in December, a decision described as “finely balanced”, according to the report, while some participants expressed the “merits” of not reduce borrowing costs in light of what they saw as a lack of progress in the fight against inflation.

Given the uncertainties surrounding the outlook and the rate cuts already made over the past year, Fed officials indicated that the institution has reached or is approaching the “appropriate time to slow the pace” of the monetary easing, it is reported.

“Most participants noted (…) that the (Monetary Policy) Committee could adopt a cautious approach” regarding potential additional rate cuts, the minutes of the meeting show.

The Fed is expected to leave its rates unchanged at its next meeting, January 28-29, a few days after the return to the White House of Donald Trump, who will be inaugurated on January 20.

(Howard Schneider; Jean Terzian)

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