The Federal Reserve holds fixed interest rates

Washington – and Federal Reserve In a close observer decision, the line was held on the line on standard interest rates, although it still indicates that the cuts are likely to be later in the year.

In the face of urgent concerns about the tariff of influence, the Federal Open Market Committee that determines the prices will retain, as the main borrowing rate is in limits between 4.25 % -4.5 %, as it was. Since December. The markets were pricing almost zero to move in a two -day policy meeting.

Along with the decision, officials updated their rate and economic expectations for this year and during 2027 and changed the pace that reduce bond holdings.

Despite the uninterrupted effect of the president Donald TrumpThe customs tariff, in addition to the ambitious fiscal policy of tax exemptions and the abolition of organizational restrictions, said that they still see a decrease in the percentage of the other percentage until 2025. The Federal Reserve prefers to move with increases at the quarter -points, and therefore this means two discounts this year.

Investors have taken an encouragement that there are other discounts that may be at the forefront, with the Dow Jones industrial average It rises more than 400 points After the decision. However, in a press conferenceChairman of the Federal Reserve Jerome Powell He said that the central bank will be comfortable to keep interest rates high if the conditions justify this.

“If the economy remains strong, and the inflation does not continue to move in a sustainable manner about 2 %, we can maintain policy control for a longer period,” he said. “If the labor market is unexpectedly weakening, or if inflation decreases more quickly than expected, we can reduce policy accordingly.”

“It has increased uncertainty about the economic view,” The aforementioned document. “The committee is concerned with risks on both sides of its double mandate.”

The Federal Reserve is accused of the double goals of maintaining full workers and low prices.

At the press conference, Powell pointed out that there was “moderation in spending on consumers” and is expected to show the definitions of rising prices. These trends may have contributed to the most cautious economic expectations of the committee.

The group reduced its collective view of economic growth and gave a higher stumbling block to drop inflation. Officials now believe that the economy is accelerating at only 1.7 % this year, a decrease of 0.4 percentage points from the last projection in December. Upon inflation, the basic prices are expected to grow at an annual rate by 2.8 %, an increase of 0.3 percentage points over the previous estimate.

According to A Point PlumThe opinion is somewhat to some extent on the prices from December. At the previous meeting, not only one participant saw any interest rate changes in 2025, compared to four now.

The network showed unchanged average forecasts during the month of December for the coming years, with the equivalent of expected discounts in 2026 and one others in 2027 before the average money rate at the Federal Reserve stabilized at a longer level of about 3 %.

The air is sure about what will come Consumer confidence, Those in recent investigative studies have raised inflation expectations due to definitions. Retailing spending in February increasedAnd if it is less than expected, although the basic indicators showed this Consumers still wander in the storm Political climate.

The shares have been fragile since Trump took office, with average average inside and outside Correction area While administration officials have warned against economic resets away from the stimulation fueled by the government and a more approach to the private sector.

Bank of America CEO Brian Moinhan Earlier on Wednesday, he faced a lot of dark conversation about Wall Street. The second largest American bank said by the assets Card data shows that spending continues at a strong paceWith Bofa economists expect the economy to grow about 2 % this year.

However, some cracks appear in the labor market. Non -agricultural salary statements I slept at a slower pace than expected In February and a wide scale for unemployment that includes frustrated workers and employment, they jumped a percentage during the month to its highest levels since October 2021.

“The Federal Reserve’s movements today echo the type of uncertainty that Wall Street feels.” “Their expectations are some stagnation because gross domestic product estimates decreased with high inflation, but none of them are very crucial.”

– Sarah Min of CNBC contributed to this report.