Officials in the Federal Reserve stabilized interest rates after the first two -day policy meeting held in the Trump administration on the second day on Wednesday. The decision will be brought in despite the pressure of President Donald Trump reducing the price to the policy device.
One clue of the theoretical basis of the central bank: Press Release to Announces the decision -Analysts usually analyze signs of the previous road- The inflation has “advanced” the goal of 2 %. A part of the previous line has been deleted. “Slightly rising” only on Wednesday.
Consumer prices were 2.9 % higher than the same period of the average year in December. This is an annual rate that is more than a few months exceeding the 2 % goal of the Fed.
Fed Chair Jerome Powell will say at 2:30 pm about the current concept and economic condition of the central bank on interest rates.
Last week, in a speech of a wide range of video conferences to the World Economic Forum in Davos, Switzerland, Trump added, “They should fall around the world,” said Trump added, “they should fall around the world.” Interest rates should follow us. “
Comments have expanded the Trump habit of publishing his views on monetary policy, which has long been avoided by the United States president to maintain politics.
“I know that interest rates are much better than them,” he said in a follow -up comment after Davos’s speech. He also updated his criticism of Powell in 2017 and promised not to exclude before Powell’s term ended in May 2026.
Since Trump resigned in January 2021, the US economy has been very different, and the country has been grasped in a fierce conflict with COVID-19 pandemic over the closing measures to fight it.
Inflation has dramatically reduced after the pandemic era of many consumers’ finances. The unemployment rate decreased from 4.2 % to 4.1 %, one month before the employer added to 15 million employment, reducing the worries about the cool but sturdy labor market.
Consumer spending, on the other hand, is stable, despite the fact that the household focuses on the value. Federal researchers said in December that gross domestic production, mainly promoted by product and service consumption, increased at least 3 % for the second consecutive quarter.
Analysts consider these and other metrics as a sign that the economy is still humming, despite the difficulty in inflation. After the Central Bank has been reduced in three consecutive meetings, pencils have been prepared by twice this year, and the benchmark rate has been reduced from 5.25 % -5.5 % to the current high range to 4.25 % to 4.5 %. did.
However, economists say that the delicate dance of the economy to reduce price growth without pushing the economy into a recession and maintains borrowing costs is more complicated. It is mainly due to Trump’s economic agenda, especially tariffs, and his first policy is on the expected front of Saturday.
The Fed’s policy creator, now in a particularly difficult situation, stated in a statement prior to the latest interest rate decision on Tuesday, said Nerdwallet’s advanced economist. “The story of an additional inflation of inflation is more weight because the new administration is in place and has started working.”
“It is clear that this year’s central bank’s decision will be formed by the Trump administration’s policy on trade and immigration,” said Joe Brus Eras, a financial company RSM Chief Economist. “These policies can lead to higher inflation, or as important, it will increase the expectations of inflation and risk 2 % of the Fed’s long -standing inflation goals.”
