Jerome Powell, the US Federal Reserve Speaker, is witnessing a hearing of the House of Representatives Financial Services Committee on the “Semi -annual monetary policy report to Congress”, in the Capitol Hill in Washington, DC, United States, February 12, 2025.
Nathan Howard Reuters
Federal Reserve officials cut their economic outlook on Wednesday, as they saw the American economy growing at a rate of 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 central bank” is interested in risks on both sides of its double mandate. “
Fears of the economic slowdown and the re -inflation sequence have increased significantly, as President Donald Trump's tariff is expected to raise the main American trading partners prices, services, services and spending on consumers.
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.
