The Federal Reserve left its benchmark interest rate unchanged on Wednesday after cutting three times in a line last year, indicating a more alert approach as Fed attempted to gauge that inflation has led to and what Policies may chase President Donald Trump.
In a statement, Fed said that the job market is “solid”, and said that in recent months the “irregular rate” has become stable at a low level. “Fed, considering its assessment of inflation as difficult, said that it” remains somewhat high. “Both a healthy job market and more stubborn inflation would mean low fed cuts especially in the coming months.
At a news conference on Wednesday, Federal Reserve President Jerome Powell dismissed a large number of questions about Trump’s recent comments, including one of the last week when the President said he said he said he said that he said in low oil prices. Less than and then “demand” is at low rates. Hey said that he would talk about it with Powell.
Powell said, “There is no response or comment on whatever the President said.” Asked if Trump had communicated his will for the lower council directly to Pavel, the Fed Chair said he had “no contact”.
Regarding the major rate of Fed, Powell expressed more intentional approaches, given that the economy is mostly healthy – the unemployment rate is low 4.1% and the decline has increased by 3% at the annual rate.
“With … the economy remains strong, we do not need to be in a hurry to adjust our policy,” Powell said.
When asked about the possible impact of the proposed sharp policy changes about tariffs, immigration, tax cuts and deragulation, Trump said, Powell said that the Fed Policy maker “Fed policy maker” Waiting for which policies are connected to see what policies are attached . “
“We don’t know what will happen,” said. “We need to express those policies, before we can start making a commendable assessment of what their implications for the economy will be.”
Kathy Bosjanik, the chief economist of Nationwide Financial, said Powell’s comments show that Fed would not cut rates again by the middle of this year.
“We are all in the waiting-and-looking mode, including the fed,” he said.
The Fed reduced its rate last year to 5.3% to 4.3%, with concern that the job market was getting weaker. Hiring slides in summer and the unemployment rate was fixed, allowing the Fed officials to approve the half point cut in September. Nevertheless, the hiring rebound and unemployment rate declined slightly last month, less 4.1%.
Powell has stated that it is difficult to gauge, where inflation is led, which policies will adopt the policies due to increasing uncertainty in the part and how soon they will affect the economy. High tattifies and tax cuts may push inflation more, while the deragulation may possibly reduce it.
The fed specificly keeps the interest rates high to borrow and spend and calm inflation.
In December, the Fed officials indicated that they could reduce their rates only twice this year. Goldman Sachs Economists believe that they will not be cut till June and December.
In November, according to Fed’s favorite remedy, inflation is just 2.4%, not away from its 2% target. But except for unstable food and energy categories, core prices increased by 2.8% more painful a year ago. Fed pays full attention to the main prices because they are often a better guide to the future path of inflation.
Powell stated that the fed wants to “see” real progress on inflation or … before some weakness in the laboratory market “before further cuts”.
In a post in his true social account late on Wednesday night, Trump criticized Fed to fail to reduce inflation, saying that he “exposing American energy production, reducing regulation, reviving international trade Will do this by doing and rule American manufacturing. “
During the news conference, Powell asked about Trump’s executive orders, which was aimed at limiting diversity, equity and inclusion programs, which Powell has predicted predetermined.
“As we have practiced on many adminals, we are working to align our policies with executive orders and correspond to the applied law,” said.
