The Federal Reserve reviews its expectations in the face of Trump’s actions | The economy
Federal Reserve President Jerome Powell has been performed so far Donald Trump’s economic policy is a serious discreet when it comes to valuable. White House sow uncertainty, especially in relation to the dubious decisions of the tenant, They are losing Belos To the first economy in the world. This Wednesday, there will be a new occasion to comment on Powell, in the intervention of investors with some concern. In addition, the Federal Open Market Committee (FOMC) will update their gross financial instructions with interest rates at a meeting. It is preparing to maintain the price of money at 4.25%-4.50%.
Powell takes it Trying to achieve soft landing for almost three years American Economy. That is, it tries with its monetary policy, 2% of inflation without causing significant employment losses, the full -fledged depression is very low. When the Federal Reserve reaches his destination, Trump’s return to power is a turbulent turbulent that complicates the plane. Back to Touch Road Map.
Every quarter, Federal Reserve members publish their gross economic image. In December, gross domestic product (GDP), 2.5% inflation and 4.3% of the unemployment rate of 2.1%, aims to close its expectations medium 2025. For that scenario they are the appropriate monetary policy route to two sales of this year’s quarter quarter. Prior to the resistance of economic strength and inflation, investors began to assume that there would be a quarter -point cut this year.
Trump, however, made Panorama complex. Tariffs and immigration limits Inflation stresses increase, Commercial obstacles, cost cuts and federal employees They have growth. Therefore, there are powers StagxionistasThe worst nightmare of monetary authorities, at the moment they are moderate.
These changes are reflected in the review of Fed members’ instructions. “FOMC. Put steady types, Suggest weak growth this year by reducing updated economic expectations and reviewing the inflation instruction, ”said Julius Bear Chief Economist David Kohl.
The Increase in growth He has already raised the year -round type sales estimates. According to the Futures Markets Quotes, investors now expect two and three cuts between 0.25 points, although uncertainty is high and quotes are changing. Two sensitive two -year -old types of monetary policy have fallen strongly in recent weeks.
Most economists are expected to continue with the idea of applying two cuts in the rest of the year, although Wednesday’s suggestion will not clear the doubts. At that time, investors expect evidence of the Federal Reserve president at his press conference.
Wait and see
In Your last public intervention before this week’s meeting, On March 7, Powell referred to the actions and statements of the new administration. “The uncertainty is high about changes and their impacts. Waiting and see. It is their current attitude towards the monetary policy of the world’s first economy.
Powell insisted that he would make his decisions based on the Central Bank data, but to measure their words, in the event of high uncertainty, mostly in the event of high uncertainty, caused by a clutter and changing tariff threats. Trump himself dismissed the recession and was iCTed as “transition period”, but its Treasury Secretary Scott Besant suggested that the United States and markets need “detoxification”. Investors want to hear that the Fed is ready to be protected if necessary.
Before the interval began in January at this Wednesday meeting, the Fed reduced interest rates between September and December one percentage between September and December. Powell Made it clear a Y. Again Since then, there is no need to stay in a hurry to continue to cut interest rates.
Inflation has not yet achieved its goal and the latest codes are not completely clear, the economy has so far been solid and developing. Inflation fell to 2.8% in February, which was minimal in three months, but inflation estimates fired tariffs. The unemployment rate is low, 4.1%in February, but the utility figures show that some demand is weak. “Despite high levels of uncertainty, the United States economy is still in good condition,” Powell said on March 7.
