Federal Reserve officials expressed concern that inflation would stubbornly remain above the central bank's 2% target, and over the possible impact of U.S. President-elect Donald Trump's policies. Consequently, officials would be investing over £300 million ($369.9 million) to expand its global headquarters. The investment will help it meet growing demand by the ultra-rich, who have lost 0.
48% in Wednesday's trading, putting it close to correction territory, which is typically seen as a 10% drop from a recent high. According to minutes for the Fed's December meeting, officials were worried about inflation and the impact of Trump's stated policies (though Trump was not explicitly named). 'Almost all participants judged that upside risks to the inflation outlook had increased,' the minutes said.'Participants cited recent stronger-than-expected readings on inflation and the likely effects of potential changes in trade and immigration policy.'Upside risks to inflation, problematic policies for the economy and fewer-than-expected rate cuts: That's a potent and bitter brew for investors to swallow. Yield on the 10-year Treasury note hit 4.730% during intraday trading, the highest since April. Inflation's stubbornness recently had been driven primarily by 'imputed' prices such as housing services, while 'observed' prices for other goods and services show disinflation. Waller added that if economic conditions go according to his view, he would 'support continuing to cut our policy rate in 2025.' What's not priced in as much is the U.S. jobs report for December, due on Friday. That could be the next catalyst for markets
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