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The American central bank has maintained the interest rates unchanged for the second consecutive time, while warning that economic uncertainty had increased.
The decision, which was widely expected, left the reference rate of reference for the federal reserve oscillating around 4.3%, where it has been silent since December.
The forecasts published by the Bank also showed that political decision -makers expect lower growth and faster price inflation this year than they did a few months ago.
This comes then that concerns increases concerning the effect that President Donald Trump’s prices have on the economy.
Since taking office in January, Trump has announced Blitz new prices while calling for major tax reductions, regulations and public spending.
Economists have warned that some of these policies could lead to a price increase, at least in the short term, and increase uncertainty for businesses.
Analysts claim that the concerns have also contributed to a stock market sale, the S&P 500 down 10% of the levels of February at September for the last time in September.
However, in its rate announcement, the Fed said that economic activity had continued to develop at a “solid” rate.
The president of the federal reserve, Jerome Powell, previously said that he had seen little risks to adopt an approach to the patient, while waiting for more certainty on the impact of White House policies.
But the dynamics have added to the challenge facing the Fed, which has spent much of the last three years trying to maintain stable prices and avoid the economic slowdown.
It increased the borrowing costs significantly from 2022, aimed at cooling the economy and facilitating pressures that increase prices.
Inflation, the price increase rate, has since fallen to 2.8% in February, but remains above the target of 2% of the bank.
Recent surveys also suggest that inflation public expectations have increased, which could make prices for stabilization of the bank’s jobs more difficult.
Households that expect prices to increase are encouraged to buy now. But this can fuel inflation, because companies respond to the increase in demand by increasing prices more.
“The problem that the United States is confronted is that inflation remains a main risk and shows that signs of consumer expectations are not anchored by the target of 2%,” said Lindsay James, investment strategist at Quilter.
“The main demand indicators can slow down in the United States, but inflation persists and risks spiral if the proposed economic policies are continuing.”
Forecasts have shown that political decision -makers now expect inflation to 2.7% at the end of this year, against 2.5% that they had scheduled in December.
They also expect growth of only 1.7% this year, compared to 2.1% previously planned.
Political decision -makers always indicate that they expect to reduce rates by the end of the year.
