The Fed maintains stable interest rates

Washington – Federal reserve On Wednesday, the carefully observed decision kept the line from comparing interest rates, although she still indicated that the reductions were probably later this year.

In the face of burning fears about the impact of the tariff, they will have a slowed economy, the Federal Federal Committee on the market has maintained its key borrowing rate from 4.25%-4.5%, where it was so From December. Markets valued virtually zero chance to move at a two -day politics meeting this week.

Along with the decision, officials updated their forecasts regarding the rate and economic this year and by 2027 and changed the pace at which they reduce the resources of the bond.

Despite the uncertain influence of the president Donald TrumpTariffs, as well as an ambitious fiscal policy about tax breaks and deregulation, officials said that they still see another half percentage of the rate reduction to 2025. The Fed prefers to transfer the increase in the quarter point, so it would mean two reductions this year.

Investors encouraged that further cuts could be primarily, and Dow Jones Industrial Saive Over 400 points are growing after the decision. However, in press conferenceChairman of the Federal Reserve Jerome Powell He said that the central bank would be comfortable, maintaining elevated interest rates if they justify the conditions.

“If the economy remains strong and inflation does not continue to move a balanced in the direction of 2%, we can keep a policy limitation for longer,” he said. “If the labor market was unexpectedly weakening or inflation would fall faster than expected, we can properly alleviate the policy.”

“Uncertainty about economic perspectives has increased” The document was given. “The committee draws attention to the risk of both sides of the double mandate.”

The Fed is accused of double -employed maintenance and low prices.

At the press conference, Powell noticed that there was “moderation of consumer expenditure” and predicts that the tariffs can put pressure on prices. These trends could contribute to the more cautious economic prospects for the committee.

The group reduced its collective prospects for economic growth and gave an increase in the higher inflation forecast. Officials now see that the economy accelerates only 1.7% of the pace this year, which is a decrease of 0.4 percentage from the last forecast in December. With regard to inflation, the prices of the cores will increase at 2.8% of the annual rate, which is an increase of 0.3 percentage points compared to previous estimates.

According to “Plot Dot” expectations of the feet of officialsThe view becomes a bit more hawk in terms of rates since December. At the previous meeting, only one participant did not notice changes in the rate in 2025, compared to four.

The grid showed that the expectations of the rate were unchanged in December in the coming years, with equivalent two cuts with expectations in 2026 and one more in 2027, before the Fed Fed Fund rate was set at a longer level of about 3%.

Uncertain air over what is to come consumer trust, which in recent studies has raised inflation expectations due to tariffs. Retail expenses increased in FebruaryAlthough less than expected, although the indicators lying at the root showed it Consumers still know the storm political climate.

The supplies have been fragile since the Trump’s office is covered, and the main medium immerse Correction territory When administration officials warned about economic resetting from the stimulus driven by the government in the direction of a more private sector.

Bank of America CEO Brian Moynihan Earlier, Wednesday did not correspond to a significant part of the gloomy conversation recently around Wall Street. The head of the second largest American bank said he said Card data shows that the expenses are continued at a solid paceBecause BFA economists expect the economy to increase by about 2%this year.

However, some cracks showed up on the labor market. Non -Farmy payroll growing at a slower than expected pace In February and a wide measure of unemployment, which includes discouraged and insufficient employees, increased by half a percentage point in a month to the highest level from October 2021.

“Today’s Fed moves reflect the type of uncertainty of Wall Street,” said David Russell, a global head of market strategy during tradition. “Their expectations are somewhat stagflower, because GDP estimates dropped when inflation increased, but none of them is very decisive.”

—CNBC Sarah min contributed to this report.