As widely expected by the markets, the Fed leaves the cost of money unchanged: Interest rates remain stopped in a fork between 4.25% and 4.50%. Therefore, the hoped for attempts of the President did not have had the effect Donald Trump, who had “threatened” and hoped for the “dismissal” of President Jerome Powell. In particular, the warning comes from the American central bank on the fact that the economy is facing growing risks increase of the Dismpjust and inflation even in the wake of the fears that i duties by Donald Trump can trigger new pressures.
Fed, rates still
“Although the oscillations of net exports have influenced the data, the recent indicators suggest that the economic activity has continued to expand at a sustained pace – reads the statement published at the end of the meeting – the unemployment rate has stabilized at a low level in recent months and the conditions of the labor market remain solid. The ‘inflation remains rather high“.
“Despite the uncertainty, The economy remains in a solid position “, Powell said, underlining that Federal Reserve “We believe that the current line puts us in a good position to reply promptly to potential new developments “. At the press conference Powell said that the central bank It does not intend to cut rates in advance, since inflation is still above the objective, with forecasts of further potential increase in inflation in the short term. “It is not a situation in which we can be quotesbecause in reality we do not know what the right answers will be to the data until we have more, “he said.
Wait and See
“For the moment the Fed remains in a phase of awaitingwaiting for uncertainty to be dissipated. The latest employment data, better than expected, have supported the attentive position of the Fed, and now it is up to the labor market weakening enough to allow a recovery of the monetary locking cycle. However, Any weakening of the job market phe would have to take several months to clearly emerge, and we believe that the Fed is more likely to keep rates unchanged even in the meeting next month, “he underlines Ashish Shah, CIO DI PUBLIC INVESTING by Goldman Sachs Asset Managementhe comment of the Fed decision,
