The federal reserve continues to stop the cuts in interest rates, and two discounts are expected later this year

The federal reserve has just met to discuss the possibility of interest rates. this time , The Federal Reserve decided to extend the price stop, Leave rates in the range of 4.25 % to 4.5 %. The decision came due to a stable economic activity that is expected to grow in the first quarter. Economists have greatly expected this result.

“The Federal Reserve will maintain the rates that are today,” Melissa Cohen, Vice President of Lailem Ravis, mortgaged. ((Federal Reserve Chairman Jerome Powell) said repeatedly that the Federal Reserve is not in a hurry to reduce prices. The Trump administration tariff may increase inflation, which makes the discounts of future prices not likely. “

Although the Federal Reserve indicated that inflation is still high, the unemployment rate has settled, and the labor markets are still solid. To the inch of the economy closer to the inflation levels 2 %, the Federal Reserve in the end decided to leave the prices of the place.

“While economic activity in the first quarter economy is still going on the right path to reporting growth, American families are increasingly interested in potential re -inflation, their job security and financial expectations, which hinder them from the main expenses,” said Dr. Selma Hayeb, chief economist, job security and financial expectations, which prevent them from conducting major expenses. “At the same time, many are still inflating housing and relevant services in the past few years.”

Despite the slowly growing economy, consumers are not completely confident in the economic situation. A variety of social and political actions still affects American families. The newly implemented definitions are one of the factors that contribute to this uncertainty.

“The Federal Reserve War in the fight against stubborn inflation still affects the lives of the daily American families,” Anya Gizonterman, director of the empire of assets, explained in a statement. “Moreover, the Federal Reserve now must look closely at any tariff -related prices, which will also keep interest rates as well for a longer period.”

“However, it seems that the economy continues the so -called” soft landing “, we expect the mortgage rates to decrease gradually during the summer, but not by more than one percentage.”

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It reduces inflation in February, but Trump’s tariff can hinder progress

Other price discounts are predicted by the end of the year

Prices remained unchanged after the Federal Reserve meeting, but they are He pointed out that price cuts will happen this year. Economists are largely agreed that consumers will soon be discounts. Analysts from Barclays Expect discounts at a quarter price, probably in June and September. They previously thought that there would be only one pieces in June.

“The most soft labor market makes us add another price reduction, despite high inflation,” said Barclays analysts.

Barclay predicts that slowing the labor market will raise the unemployment rate later in the year, with the height of unemployment by 4.3 % in October.

The first interest reduction in June is expected to reflect the slower growth and high unemployment. It is expected that the second price reduction in September will indicate “the increasing unemployment rate and some signs of improvement in monthly inflation publications.”

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The mortgage rates have increased to its lowest level in two months this week, and less than 7 % remain

Consumer confidence decreased dramatically last month

Many consumers do not see the economy stable, as is clear from Consumer confidence scanning. Consumer confidence measures the way the Americans feel about commercial and economic conditions.

The current situation index decreased by 3.4 points to 136.5 in February, while the expectation index also decreased 9.3 points to 72.9. Less than 80 on the index usually indicate stagnation on the horizon. This is the first time that the index has been low since June 2024.

“In February, consumer confidence has registered the largest monthly decline since August 2021,” said Stephanie Gwechadd, chief economist of the Conference Council. “This is the third consecutive decrease in a row in a month, as the index was raised to the bottom of the range that prevailed since 2022 … The views of the current labor market conditions were laid down. Consumers have become pessimistic about future working conditions and less optimistic about future income. Persity about future employment prospects has declined and reached the rise of the ten.”

More people are planning to buy homes, which indicates one field of improvement. The recent decline in mortgage rates is likely why home buyers are more willing to buy. However, car purchase plans were rejected, as did plans to make larger purchases, such as televisions and other electronics.

“The average inflation forecast increased for 12 months from 5.2 % to 6 % in February. This increase is likely to reflect a mixture of factors, including sticky inflation, as well as the last jump in the prices of major family foodstuffs such as eggs and the expected effect of tariffs,” said Gouchard. “There has been a sharp increase in trade signals, definitions, and a return to an invisible level since 2019.”

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The elderly for a moderate cost of living in social security payments next year

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