America’s central bank is still trying to understand President-elect Donald Trump’s policies and the effect they would have on the U.S. economy.
So far, they don’t have a clear understanding. During a meeting in mid-December, Federal Reserve officials said there was “considerable uncertainty about the timing, size and composition of any future fiscal and other economic policy initiatives,” according to minutes published Wednesday.
Fed officials did see an “upside” to the economic outlook since Trump won the election, meaning that growth and inflation could be higher than expected. Both of these factors would get the Fed to raise interest rates at a faster pace.
The December meeting was the first time Fed officials had started to incorporate Trump’s policies into its outlook.
The Fed raised rates at the end of that meeting, its second rate hike in nearly a decade.
Yellen called the latest rate hike a “reflection of confidence” in the Fed’s view of the economy’s progress and where it’s going.
Some Fed officials see President-elect Donald Trump’s economic plans as having the potential boost to the economy. Trump plans to lower corporate taxes and ramp up spending on infrastructure — moves that should improve economic growth.