Former director of the NEC Gary Kon and former Governor of the Federal Reserve Kevin Worsha analyzes the federal reserve policy on Kudlov.
A Federal Reserve On Wednesday, they said that it would leave its benchmark of the interest rate unchanged after June on monetary policy, as politicians continue to monitor the inflation market and work against the background of increased economic uncertainty.
The Central Bank’s decision leaves the benchmark of the federal funds at 4.25% to 4.5%.
It comes after the Fed left the rates at this level at the previous three meetings in January, March. The Central Bank reduced its rates at its last three meetings last year, in which in September a 50-base point and a pair of declines of the 25-base point in November and December were reduced.
The Federal Open Market Committee (FOMC), which manages the steps of the Central Bank’s monetary policy, states in its message that “although the swing in pure exports has affected data, the latest indicators believe that economic activity continues to expand in firm temperatures.”
“The unemployment rate remains low and the labor market conditions remain solid. Inflation remains somewhat elevated,” the FOMC statement said. Politicians have added that the uncertainty in economic forecasts is “decreasing, but remains increased” and that the Fed “carefully relates to the risks for both sides of their double mandate”, which is to reach maximum employment and stable prices with 2%long -term inflation.
FOMC policy also released short information about economic forecasts known as the so -called “point story”, which showed that participants saw two decreases in the interest rate in 2025, and then one cut in 2026 and 2027.
They also design PCE inflation this year up to 3% before decreasing to 2.4% in 2026 and 2.1% next year. The real gross domestic product (GDP) is considered as a slowdown up to 1.4% in 2025, before the growth gained up to 1.6% next year and 1.8% in 2027. Unemployment is regarded as 4.5% in 2025 and 2026 before dropping to 4.4% in 2027.
This is a developing story. Please check the updates.
