The federal reserve system on Wednesday held US interest rates, although officials reduced their growth forecasts and increased their projections to inflation.
The latest Fed projection set has shown that officials are now expecting GDP to be expanded by 1.7 %this year, with a price prognosis to increase by 2.7 %, growing concerns about investors about the impact of Trump's business policy and reducing spending on the world's largest economy.
Three months ago, officials at the Federal Committee on the Open Market, the Policy of Central Bank Policy, predict the growth of 2.1 % for 2025, and estimates that closely monitored personal consumption expenses will end at 2.5 %.
The FOMC statement on Wednesday, after the US rates maintained the target range for the Benchmark funds between 4.25-4.5 %, said: “The uncertainty about the economic outlook has increased.”
The latest so-called Dot Plot projection shows that Fed officials generally expect one more or two quarterly point reduction of this year-stee as in December-PO rates to reduce 1 percent in 2024.
Investors expect by the end of 2025 between two and three quarters.
The Fed also announced that it would slow the pace of its quantitative tightening program, which will reduce the amount of the Ministry of the US Treasury, which allows you to cut off its balance from $ 25 billion to $ 5 billion every month.
Fed Governor Christopher Waller voted against the decision to slow quantitative tightening, with the current decline in $ 25 billion a month.
All members of the FOMC vote supported the decision to hold interest rates.
