The federal preparation system did not change interest rates on Wednesday. Central Bank has been cautious about further reductions in the sturdy economy and inflation uncertainty.
The Central Bank's decision to pause at the first meeting in 2025 explained the progress of the stream of inflation following the series of reductions in September.
In the three conferences, the Fed lowered the full amount from 4.25 % to 4.5 %. This was maintained on Wednesday.
In a statement published along with the decision, the Fed described the labor market as “solid” and stated that the unemployment rate was “stable at a low level.”
However, inflation concerns have continued to be dominated by the Fed's previous guidance on progress to achieve the central bank 2 % inflation target. Rather, he said that inflation remained “slightly rising.”
Fed authorities are trying to balance the high inflation completely after the worst shock in decades and prevent the labor market from being over -weakened. 。 If interest rates are too slow, the risk of employment is at risk, but the decline in interest rates is at risk that inflation will be stuck beyond 2 % of the Fed Fed.
Anxiety about the labor market that appeared in the summer is relieved because companies continue to hire and remain low. However, the progress of price pressure adjustment has become bumpy in recent months. The concern is that, given the plan that President Trump changes dramatically in his second phase in the White House, it may shine.
What is unclear is how these policies affect inflation and growth, when the Fed can reduce interest rates again, and how much it will affect.
In December, the authorities reduced the prediction of this year's rate to half (half of the estimated in September) in September. It reflects the potential changes in policy from Mr. Trump to several officials, and Fed's Jerome H. He said he had revised the outlook.
For example, how the Fed corresponds to the price pressure caused by tariffs is how to expect consumers and companies on future inflatements. Central Bank has proved more concerns about the possibility of growth caused by trade tension during Trump's first term. 。
Mr. Trump's top economic advisor, including the newly confirmed Secretary of Finance, Scott Bessent, increased consumer prices because of the increase in customs duties and being offset by stronger dollars. I pushed back the idea of doing. Bessent also hopes that foreign manufacturers will reduce prices to maintain competitiveness with US companies.
Mr. Trump made the skashing inflation a central pillar of his economic agenda, and last week, as his policy drops crude oil prices, he demands that interest rates will fall soon.
Mr. Trump repeatedly attacked Powell during his first term because he could not lower interest rates fast enough. At one point, he questioned whether the Fed chair was “bigger” for the United States, rather than the Chinese mayor of Xi Jinping.
At the New York Times event in December, Powell said that he was “not worried about maintaining political independence.”
