Fed has interest rates stable

Washington – Federal Reserve Setting the Line on the trend on the trend on Wednesday, although the reduction was probably next year.

Faced with urgent concern about the tariffs on the slowdown economy, the Federal Open Market Committee, which sets the bet, has retained a key borrowing rate aimed at 4.25%-4.5%, where it has been since December. Markets This week this week was virtually not a zero chance of moving at a two -day policy meeting this week.

Along with the decision, the officials updated their rates and economic forecasts this year and by 2027 and changed the pace by which they reduce the bonds.

Despite the indefinite impact of President Donald Trump’s tariffs, as well as an ambitious fiscal policy of tax benefits and de -deregulation, officials said they still see another half -rail point by 2025. The Fed prefers to move to a quarter percentage points, so this will mean two cuts this year.

In his statement, after the FOMC meeting, he noted the increased level of ambiguity associated with the modern climate.

“Uncertainty around the economic worldview has increased,” ” The document is said. “The Committee is careful about the risks on both sides of its double mandate.”

Federal He is charged for bilateral purposes of maintaining full employment and low prices.

The Committee lowered its collective forecast for economic growth and gave a higher blow to its inflation projection. This year, officials see that the economy accelerates only 1.7%, which is 0.4 percent of the latest projection in December. According to inflation, the prices for the main ones are expected to rise from 2.8% per annum, which is 0.3 percent of the previous estimate.

According to the “point plot” of official expectations, this view has been turning into slightly more hay rates since December. At the previous meeting, only one participant in 2025 did not notice the rate of rate compared to four.

The network showed that the rates expectations did not change over December, and the equivalent of two cuts is expected in 2026, and another in 2027, before the Fed rates settled at a longer level of about 3%.

In addition to the rate on the rate, the Fed has announced the further scaling of its “Quantitative delay” program, in which it slowly reduces the bonds it contains on its balance.

Currently, the Central Bank will only allow $ 5 billion to pay off the Treasury to dismiss each month, declining compared to $ 25 billion. However, it has left a $ 35 billion restriction on mortgage securities unchanged, the level it rarely got since the launch of the process.

Fed Fed, Christopher Waller, was a lonely disagreement with the Fed step. However, the statement notes that Waller is a supporter of the bet, but wanted the QT program to continue as before.

The Fed’s actions follow the restless start of the second term of President Donald Trump. The Republican has rude financial markets with tariffs that are still sold on steel, aluminum and the range of other goods against US global trading partners.

In addition, the administration threatens the next round even more aggressive duties after the inspection scheduled for the issue of April 2.

The vague air over the fact that the consumer’s confidence, who in recent surveys thwarted inflation expectations from the tariffs, was muted. In February, retail expenses increased, although less expected, although the main indicators showed that consumers still overcome the violent political climate.

The reserves were fragile because Trump took up the post, and the main average indicate that immersed and leaving the adjustment when the administration officials warned of the economic discharge from the government’s stimulation and to the sector -oriented approach.

Bank of America CEO Brian Mainikhan earlier on Wednesday opposed most of the gloomy conversations recently around Wall Rate. The head of the Second -largest US Bank said the card data shows that the costs are on a solid pace, and BOFA economists expect the economy to grow about 2% this year.

However, some cracks show the labor market.

Salaries that are not in force, more slowly than expected in February, and a wide unemployment measure, which includes embarrassed and low -income workers who have jumped one and a half percent to the highest level since October 2021.