The Federal Reserve kept its benchmark interest rate stable on Wednesday, now investors are looking forward to hearing from Chair Jerome Powell for further indications of monetary policy and the direction of the US economy.
Fed said, “The uncertainty of the economic outlook has increased Announcement. “The committee will be ready to properly adjust the monetary policy stance if there are risks that can hinder the achievement of the committee’s goals.”
The Fed now expects the economy to grow slowly this year than this year, compared to it three months ago, with unemployment around the United States likely to reach 4.4 percent. 4.1 % in FebruaryAccording to the economic estimates released on Wednesday. The central bank predicts inflation that inflation is up to 2.5 % from the current level of inflation.
Economists have warned that the Trump administration’s aggressive trade policies, including standing on Canada and Mexico, have to be implemented on April 2, promoting inflation and weighing on economic activity.
Had the investors Practically no chance The Federal Open Market Committee (FOMC), the central bank’s rate setting panel, reduces interest rates this month. But President Trump’s aggressive trade policies, which have raised concerns about economic growth, have also increased uncertainty for financial markets.
In a research note on Wednesday, a research note on the Fed’s decision, Carl Webrag, the chief economist of the High Frequency Economics, wrote on Wednesday that “what has been returned to prevent the FOMC from reducing interest rates is uncertain about the Trump administration’s economic policies.”
The feed said it would retain the rate of federal funds from 4.25 % to 4.5 % on its current range.
The Central Bank’s so -called dot plot, which is used by the feed, is used to identify the approach, where interest rates are headed, the Median projection of 2025 later this year indicates 3.88 % for the Federal Fund rate, which is 50 % of the basic points this year.
Most economists expect the feed will reduce interest rates two or three times this year, though it depends on inflation that the central bank’s 2 % annual target is approaching.
Stock is maintained Minor benefits After the FOMC decision.
– This is a developing story and will be updated.
Coopered in this report.
