US fed leaf rate unchanged | Inflation news
The US Fed is in a holding pattern as it waits for more inflation and job figures and clarity on President Donald Trump’s tariff.
The United States Federal Reserve is stabilizing interest rates and has given very little insight that the cost of borrowing can be in an economy where inflation remains above the target, continues to grow, and unemployment rate Is less.
Fed announced its decision on Wednesday at the end of its latest two -day meeting.
After several months, in which inflation figures have gone largely sideways, the US Central Bank dropped its latest policy statement, saying that inflation has “progressed” towards the target of 2 percent of the Fed. , Only given that the price speed increases “is” high “”.
Recently the major inflation reading is about half percent or more than the reading fed target.
Fed officials say they roughly believe that progress in reducing inflation will resume this year, but now they have caught rates as they are waiting for data to confirm it.
“Economic activity has continued to expand at concrete pace. The Central Bank’s policy-making Federal Open Market Committee (FOMC) said in a statement, “The unemployment rate has stabilized at a low level in recent months, and the condition of the labor market is solid.
“The committee will carefully assess the balance of additional adjustment to the target limit for federal funds and time, the committee will carefully assess the balance of the upcoming data, the approach to the developed approach and the risks,” it said.
In collaboration with the new statement, the current 4.25 per cent to 4.25 per cent decides to maintain the interest rate overnight, puts Fed into a holding pattern as the authorities put inflation on the impact of President Donald Trump’s policies and data and clarity Has waited ,
After issuing the statement, the short -term interest rate futures showed that investors hope that the central bank will ban the rate cut again by June. The yield of American bonds had changed low while some land was lost in the shares.
The Trump administration has already moved to some unspecified migrants and freeze federal expenses, and widespread its reach to include new import tariffs at the end of this week on major trading partners like Mexico and Canada Can make
‘Light Hawkish’
The decision to keep the policy rate stable was widely estimated after three consecutive rate cuts in 2024 that reduced the benchmark rate of the Fed from a full percentage point.
There is a debate in the Central Bank about how much more rates can decline with policy makers, with the possibility of cutting two quarter-point-point rate during the year.
“Fed feels stuck with low unemployment rate and high inflation,” said Brian Jacobsen, chief economist of Annex Wealth Management, said. “The statement can be read lightly to be a hawkish, suggesting that a slight shock to rates could remove the economy out of this balance.”
Lindsay Rosar, the head of multi-sector fixed-incumbers, who invests in Goldman Sachs Asset Management, said, “While we think that the easy cycle of Fed has not run its course yet, FOMC will want to see further progress in inflation figures. . Cut the next rate, revealed the fact that he removed the reference to inflation.
Fed officials say they want to see if inflation falls on the target of Fed in the coming months before reducing the monetary policy, while expressing uncertainty about the impact of Trump’s plans. , Will also be on labor market and economic development.
