The US Fed is a retention pattern because it is waiting for inflation, employment data and clarity on President Donald Trump’s tariffs.
The US Federal Reserve stabilizes interest rates, has almost no insights if there is a possibility that borrowing costs will be further reduced in an economy with low unemployment, and the unemployment rate continues to go beyond the goal. 。
The Fed announced the decision on Wednesday at the end of the latest two -day meeting.
A few months after the inflationata moved sideways, the Central Bank of Japan stated that inflation has “progressed” for the 2 % inflation target of the Fed, and the price has increased from the latest policy language language. Only the pace is “Please note that it is still rising.”
The recent major inflation measurements are more than half higher than the FRB goal.
The Fed authorities argue that the progress of inflation will be resumed this year, but are now on hold for data because they are waiting for data to confirm it.
“Economic activity is continuing to expand at a solid pace. Central Bank’s Policy Setting Federation Open Market Committee (FOMC) states in a statement.
“When considering the scope and timing of additional adjustments to the target range of federal funding, the committee will carefully evaluate incoming data, evolving prospects, and risk balance.”
The unanimous decision of maintaining the overnight interest rate in the current 4.25 % to 4.5 % range is that the staff is waiting for further inflation and employment data, combined with the new statement, so Donald’s pattern is placed in the pattern. Clarify the impact of President Trump’s policy. 。
After the statement was announced, the short -term interest rate futures indicated that investors are expecting the central bank to reduce the reduction rate again until June. The bond yield in the United States has hardly changed, but the stock has lost the ground.
The Trump administration has already expelled unwritten immigrants and has moved to freeze federal expenditures, and includes new import tariffs for major trading partners such as Mexico and Canada this weekend. I was able to expand that range immediately.
“Hawkish calmly”
The decision to stabilize the policy rates was widely expected after the rate was reduced three times in a row in 2024 and the FRB benchmark rate was reduced to a complete point.
The Central Bank has discussions on how much interest rate is needed, and policy creators are probably hoping to reduce the number of points a half a year a year.
Bry Angn Jacobsen, Chief Economist of Annex Wels Management, states: “This statement suggests that it can be read as a mild Hawkish, and if the rate is a little shock, it can kick out the economy from this equilibrium.”
Lindsay Rosner, head of the fixed -income investment in the Goldman Sachs Asset Management, stated: We provide the following rate reductions emphasized by the fact that the reference of inflation advances has been deleted. “
Federal government officials have expressed uncertainty about the impact of Trump’s plans on price pressure, labor market, and economic growth, and before inflation relieves monetary policy before relieving monetary policy. He says he wants to see if he has fallen into the Fed’s goal in a few months.