The Federal Reserve kept the main interest rate in the selection on Wednesday, as it reflected the last direction of the dilution policy because it is looking for what is possible to be a rugged political and economic scene.
In a widely expected move, the Federal Open Market Committee of the Central Bank left without changing the borrowing rate during the night in a range ranging from 4.25 % -4.5 %.
The decision has followed three consecutive discounts since September 2024, with a full percentage point. Donald Trump Last week, the presidency assumed that its intentions immediately wanted the central bank to reduce prices.
The post -compensation statement for some clues on the logic has decreased behind the decision to retain fixed rates. It has made a somewhat more optimistic view in the labor market with a major signal from the December statement that inflation “has made progress to” 2 % of inflation goal at the Federal Reserve.
“The unemployment rate has settled in a low level in recent months, and the conditions of the labor market are still strong,” I read the new language. “Inflation is still somewhat high.”
The strongest labor market and stubborn inflation will provide a lower incentive to study the federal reserve to relieve policy. The statement again indicated that the economy “continued to expand at a strong pace.”
Modern data from politics showed some concerns about whether the progress in reducing inflation has stopped. Officials also said they want to see how the previous discounts work on their way through the economy, although most of them expect price discounts this year.
In addition, the decision comes against a volatile political background.
Within a little more than a week, Trump cut an area through politics and political standards in Washington, where hundreds of executive orders that seek to implement an aggressive agenda occurred. The President supported the customs tariff as a tool for economic and external policy, and ordered a wave of deportation against those who cross the border illegally, and has set a series of interim measures.
Moreover, Trump last week talked about his confidence that he would reduce inflation and said he would “demand” to reduce interest rates immediately. To have a controversial relationship with politicians such as during his first term.
The inflation decreased sharply from the peak of 40 years in mid -2012, but the goal of the Federal Reserve of 2 % has been out of reach. In fact, the preferred pricing scale of the central bank showed that the address enlarged has increased to 2.4 % in November, which is the highest since July, while the basic procedure excludes food and energy by 2.8 %.
Traders heard about the possibility of the Federal Reserve approximately 100 % at this meeting, and in fact they did not see another reduction coming until June. Markets are pricing with a money rate of about 3.9 % by the end of 2025, which means that 61 % of a quarter -percentage cut this year, according to this year, is likely to CME collection data. Shares He fell after the decision.
Economic growth was strong and consumer spending continues well during the year 2024. GDP tracks at an annual growth rate of 2.3 % for the fourth quarter, according to Atlanta Fair, who reduced the estimate on Wednesday from previous expectations to 3.2 % with poor data on investment Special local.
The meeting also appeared on the formation of a vote changed on FOMC.
chair Jerome Powell The other seven members of the Conservative Council this year are joined as voters by the regional presidents of the Chicago and Alberto Mosael from St. Louis and Suzanne Collins from Boston and Geoffry Schmid from Kansas City. The vote was to keep the money rate unanimously.
