The US Federal Reserve is not “early” to adjust the interest rates again, Central Bank President Geom Powell said on Wednesday that policy makers said on Wednesday that Donald Trump’s withdrawal of the White House prevents rate cuts in the first judgment after the return of the White House of the White House. Voted for
The Fed’s rate-development committee unanimously voted unanimously to keep the bank’s benchmark borrowing rate between 4.25 percent and 4.50 percent, the Fed announced in a statement.
Powell told reporters after the verdict, “Our policy stance was quite less restrictive, and the economy was strong, we do not need to stay in a hurry to adjust our policy stance.”
The stagnation of the fed follows three consecutive rate cuts, which reduces its major rate at a full percentage point simultaneously.
In his statement, Fed said that the unemployment rate “at low level” had stabilized, and the labor market was still solid.
Inflation “although” although “somewhat high,” Fed said, “In earlier statements progressed towards a long -term target of two percent of inflation by removing a reference.”
“By design, Powell provided very little on the way of new information at this FOMC meeting,” CITI economists wrote to customers in a note on Wednesday, referring to the rate-setting committee of the Fed.
Powell, he said, “effectively” had put all options for the next rate decision of the fed in March.
Trump Slams Powell, Fed
The US Central Bank has a dual mandate to work freely to deal with inflation and unemployment from the Congress.
This occurs mainly by increasing or reducing its major short -term lending rates, affecting the cost of borrowing for consumers and businesses.
Most analysts agree that the US economy is running quite well, with a strong growth, a large -scale healthy labor market, and relatively low inflation that is still stuck above the target of the fed.
But in a post in his true social account, President Trump slammed both Powell and Fed, accusing them of failing “to prevent the problem created by them with inflation.”
According to data from Futures Traders CME Group, the possibility of more than 80 percent of the possibility that Fed will expand the rate cut in their march meeting.
‘Wait and see’
Since returning to the office on 20 January, Trump has revived his dangers to put wide tariffs on American business partners earlier this week and to deport millions of unwarded workers.
He has also said that he wants to reduce tax and slash red tape on energy production.
Most – although not all – economists expect Trump’s tariffs and immigration policies at least light inflation, increasing the cost of goods faced by consumers.
Mark Zandi of Moody’s Analytics told AFP ahead of the rate of rate, “I think those policies are definitely inflation, this is just a question to what extent is a question to the extent.”
Asked about the possible impact of Trump’s proposals, including tariffs, Powell said that the fed would “wait and see” how he affected the economy.
At the last meeting of the Fed, policy makers dial to the number of cuts cut in this year’s rate of this year, with the incorporated some estimates about the possible economic policies of Trump, according to the minutes of the meeting.
Given the uncertainty about the impact of Trump’s policies on the US economy, analysts are now divided on how much Fed is expected to cut in 2025.
Barclayer’s economists pointed to the inherent strength of the economy, saying, “We maintain our Aadhaar that FOMC will cut 25bp (Aadhaar points) in June this year.”
Moody’s Analytics’s Zandi said he expects to cut two rates later a year.
However, he said, “There are meaningful obstacles that the Fed may not cut the next step rate, it may increase a rate.”
(Tagstotransite) US Fed Rate (T) Donald Trump (T) US Fed Rate Cut
