Investing.com-- U.S. stock index futures crept lower on Wednesday evening as investors grappled with the prospect of slower interest rate cuts in 2025 while also speculating over increased trade tariffs under President-elect Donald Trump. 

Futures fell after a muted session on Wall Street, as the minutes of the Fed’s December meeting struck a hawkish chord, while also raising some concerns over the impact of Trump's planned tariffs.

CNN reported on Wednesday that Trump was considering declaring a national economic emergency to provide legal justification for a series of universal trade tariffs, as well as duties on China. 

S&P 500 Futures fell 0.1% to 5,955.75 points, while Nasdaq 100 Futures fell 0.1% to 21,338.50 points by 18:16 ET (23:16 GMT). Dow Jones Futures steadied at 42,878.0 points. 

U.S. markets will be closed on Thursday for a national day of mourning to honor the death of former President Jimmy Carter. 

Fed minutes reiterate hawkish outlook, Trump tariff concerns 

The minutes of the Fed’s December meeting showed policymakers were increasingly leaning towards a slower pace of interest rate cuts this year, amid persistent concerns over stalling disinflation. 

The minutes reiterated the central bank’s hawkish stance, after it effectively halved the number of rate cuts projected for 2025 to two from four.

The central bank cut interest rates by a total of 1% in 2024, but is now expected to cut rates only marginally in 2025, amid signs of sticky inflation and a robust labor market.

Wednesday's minutes also showed some Fed officials were concerned that protectionist policies under Trump will keep inflation underpinned, while also stymieing economic growth. Officials warned that the inflation fight could take longer than expected due to "the effects of potential changes in trade and immigration policy."