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The people of the US and companies have had a swarm of politics in recent months. But one thing has been solved: Loan costs established by the US Central Bank.
The Federal Reserve was stuck with this strategy on Wednesday without leaving his key interest rate, because the officials have worsened by the economy expectations.
The decision marked the fourth without action in a row, while maintaining the bank’s influential loan rate by 4.3%, passing through December.
This is why they expect politicians forecasts, which expects more slowly, greater unemployment and faster inflation than a few months ago.
Usually, the FED reduces loans if he believes that the economy is struggling and prices begin to rise quickly.
Inflation increases the rhythm of prices, which remains above the target of Fed 2% in May 2.4%.
President Donald Trump has repeatedly called Fed to cut interest rates, argue, the problem is gone.
But Fed officials, who have the power to be independent of the White House, said they will take data-based decisions.
They said tariffs and other policy changes to the extent that they will arouse prices, which will slow down the US economy – or both – before fitting rates.
In the value announcement, the bank said it was “solid” in the general economy.
But politicians, on average growth, hope that this year expects growth this year from 1.4%, from 1.7% were expected in March.
The forecast requires approximately 3% inflation, from 2.7% announced in March to 4.5% increase in unemployment rate.
On Wednesdays before the Feder’s decision, Trump repeated the criticism of the Fed Chair of Jerome Powell, calling “stupid” and speculating about its end of the deadline.
The European Central Bank has reduced interest rates since last June. The Bank of England reduced loan costs in the last month, but this week is expected to have rates for rates.
Asaac Stell, but the richest investment director, said Trump “spoke a bit of link”, as Fed was waiting and made to a view.
“Central bankers tend to take care of their jealous independence, which means that you can sit on the fence unless you have credible reasons to cut,” he said.
The FED determines what the interest rate decisions charge for short-term loans.
A rare has had a significant impact on the costs of the cost of borrowed costs and the usual types of mortgages and other types of mortgages that charge homes and businesses.
In 4.3%, Fed reference interest rates are significantly higher than between 2008 and 2022, responding to the rise in prices rose by the bank.
But almost approximately one percentage point is lower last year.