Rawd? The federal reserve sees higher inflation and the economy is growing less than 2 % this year

Federal reserve officials cut their economic outlook at the latest expectations issued on Wednesday, as they saw the American economy growing at a rate less than 2 %.

The Federal Open Market Committee in price mode reduced its collective view of economic growth to 1.7 %, down from the last projection of 2.1 % in December. Meanwhile, officials raised their expectations for inflation, and the basic price vision grows at an annual rate of 2.8 %, up from the previous estimate of 2.5 %. The movements suggested that the central bank see the risk of a scenario in the recession, as inflation rises with the slowdown of economic growth.

In a statement, FOMC noted that “uncertainty about the economic view has increased, adding that the Federal Reserve” is concerned with risks on both sides of its double mandate. “

Fears of economic slowdown and the re -inflation sequence increased significantly as president Donald TrumpIt is expected that the aggressive definitions of the main American commercial partners will raise the prices of goods, services and spending on consumers.

“Inforcement has started to rise now,” Jerome Powell, head of the Federal Reserve, said at a press conference. “In general, it is a strong image. Survey data shows both family and companies the great uncertainty at a great rise and great concerns about the risks of the negative side.”

Currently, the Federal Reserve still expects price cuts for the rest of 2025, according to the average projection, even with the level of inflation.

The so -called DOT conspiracy indicated that 19 FOMC members, both voters and non -voters, believe that the rate of standard funds is the Federal Reserve at 3.9 % by the end of this year, equivalent to the target range from 3.75 % to 4 %. Central Bank Keep the main interest rate unchanged In a range ranging between 4.25 % -4.5 % on Wednesday.

However, their point of view bent over the drop in the interest rate, as four members did not see any changes in the year 2025. In the January meeting, only one employee expected any interest rate changes this year.

Below are the latest goals of the Federal Reserve:

Jeff Cox of CNBC contributed to reporting.