Despite the possibility of the economy, the US has kept the rates stable


The US Central Bank has abandoned unchanged interest rates for the second time in one line, while warning that economic uncertainty has increased.
The decision, which was widely expected, was placed around 4.3%of the benchmark interest rate of the Federal Reserve, where it stands since December.
The forecasts issued by the bank also showed that policy makers expected a weak growth and rapid price inflation this year, as they did a few months ago.
This comes when anxiety increases about US President Donald Trump’s impact on the tariff’s economy.
Since assuming office in January, Trump has announced a new tariff from Blitz, while also called for a big cut for taxes, regulation and government expenses.
Economists have warned that some of those policies may increase prices, at least in short -term, and increase uncertainty for businesses.
Analysts say that concerns have also helped run sales in the stock market, S&P fell 10% from February 500 to previous levels in September at previous levels.
However, in its rate declaration, Fed stated that economic activity continued to extend to “solid” speed.
Federal Reserve Chairman Jerome Powell has earlier stated that he saw a very low risk to take a patient approach waiting for more certainty about the impact of the policies of the White House.
But Dynamic has added the challenge facing the Fed, which has spent in the last three years trying to keep prices stable and avoid economic recession.
This increased the borrowing costs starting in 2022, which aims to cool the economy and reduce the pressure to increase prices.
Inflation, the rate of price increases, has fallen to 2.8% by February, but is above the 2% target of the bank.
Recent surveys also suggest that public expectations for inflation have increased, which can stabilize the bank’s job prices.
Families expected to increase prices are now encouraged to buy. But this can fuel inflation, as the firms responded to the increased demand by increasing prices.
Quilter’s investment strategist Lindsay James said, “The US problem is that inflation remains a primary risk and consumer expectations signs are becoming involuntary with 2% target.”
“The main indicators of demand may slow down in the US, but inflation persists and if the proposed economic policies continue, there is a risk of splening.”
The forecasts showed that policy makers now hopes that inflation would stand at 2.7% later this year, from 2.5% in December.
They are expecting just 1.7% growth this year, which is already below the estimated 2.1%.
Policy makers are still indicating that they expect to cut rates by the end of the year.