FOMC keeps the installments stable; Trump presses for cuts; Take a look at Jerome Powell's press conference. Further news

The Federal Reserve held on to its weapons and recorded the interest rates on Wednesday when the political decision -makers of the central bank analyze how the political changes in federal politics could manifest themselves in business.

At the end of a two-day political session, the Federal Open Market Committee voted to keep its goal for the Federal Founds rate from 4.25% to 4.50%, as investors expected. Before the decision, the Zins Futures market had the probability that interest rates would not change in 99%.

While the decision could be considered a bit boring, it is a trust vote in the current strength of the US economy, even if gross domestic product growth in the first quarter was contractually recorded. However, the conditions on the labor market and other economic indicators have remained relatively stable-a signal for fed officials that the US economy does not yet require any additional support for monetary policy.

In addition, a higher inflation of tariffs has not yet come about, even if consumer and company trust has reduced in the past few months. This has produced concerns about the potential for higher inflation and slower economic growth, but today's decision of the FED shows that political decision -makers do not panic.

The break on Wednesday comes when President Donald Trump campaigned for lower interest rates – even when he organizes aggressive tariff hikes together with cuts in federal expenses and immigration reforms. Despite the independence of the Fed in his administration, this could extend the pressure from Trump and others in relation to interest rate cuts.

Leave a Comment Cancel reply