Fed: Trump economic plans have 'considerable uncertainty'

The economy is ready, here comes a rate hike
The economy is ready, here comes a rate hike

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 saw more potential for higher economic growth and for inflation to move up faster than expected as a result of Trump's planned economic policies. Both higher growth and faster inflation could make the Fed raise interest rates at a faster pace.

Related: Fed raises rates for the first time in 2016

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 could improve economic growth.

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